Private equity suitors lining up bids for Princes Foods

A pack of private equity suitors is reportedly circling Japanese-owned Princes Foods, a maker of tinned products stocked in British supermarkets.

According to Sky News, Valeo Foods, which is majority-owned by buyout firm Bain Capital, and corporate carve-out specialist Aurelius Group, are among the bidders interested in buying Princes.

The company, which is owned by the giant Japanese conglomerate Mitsubishi Corporation, produces a range of tinned fish, fruit and ready meals, as well as fruit juices and frozen meals.

It was understood that investment bank Houlihan Lokey has been appointed to handle the sale, which industry sources said could be valued at £400m or more, depending upon the competitiveness of the auction.

Princes has been owned by Mitsubishi since 1989, but traces its roots back to 1900.

Valeo's interest in Princes is logical, given its ownership of brands such as Rowse honey and Kettle crisps, Sky said.

A number of other private equity firms, including Capvest, Valeo's former owner, have also been identified as possible bidders for Princes.

One banker suggested a break-up of the company was possible.