Hilton Food raises £55.9m to part-fund proposed Seachill acquisition

Meat packing business Hilton Food has placed a total of 7.35m shares at 760p each, raising proceeds of £55.9m to part-fund the proposed acquisition of chilled fish processor Seachill.

Hilton said the acquisition, which has an enterprise value of £84m and is expected to be earnings-enhancing in the first full year, is “strategically and financially compelling” and an attractive growth opportunity and entry into the processing and supply of fish in the UK.

It added that the chilled seafood market in Great Britain has displayed resilient growth, evidenced by a 20-year track record of increasing market value.

Chief executive officer Robert Watson said: “The processing and supplying of fish and seafood into the UK is an attractive and growing market and one where we see considerable opportunities to build Hilton's business. Our initial discussions with key customers support this view and we look forward to broadening our offering to both our UK and overseas customers alongside our existing meat business."

Hilton said the balance of the acquisition consideration plus associated transaction costs will be funded by a new debt package comprising a new banking facility of £34m.

At 1420 BST, the shares were up 5.9% to 835.50p.