Lion Capital, the owner of Weetabix, added to its range of iconic brands yesterday with the acquisition of Findus and Young’s, the frozen food businesses.

The private equity firm said that it had paid £1.1 billion to acquire FoodVest, owner of brands including Findus Crispy Pancakes, Young’s Chip Shop range and Admiral Pie – Britain’s bestselling frozen ready-meal.

The deal is one of the biggest private equity transactions in the UK this year. It came after an unsolicited offer for FoodVest made by Lion to CapVest, its owner, this year, Per Harkjaer, FoodVest’s chief executive, said.

Foodvest, which employs more than 6,000 people in 20 factories, had turnover of more than £1 billion last year. It is a leading player in the frozen food business not only in the UK but also in Scandinavia, France, Central and Eastern Europe.

Lyndon Lea, a partner in Lion Capital, who is overseeing the deal, said that the group would look to expand through bolt-on acquisitions in Europe.

“It’s a big business that can be made a lot bigger,” Mr Lea said, adding that the environment for private equity deals was terrible but that frozen food was likely to remain a growth area despite the economic downturn. “It’s a basic protein – a low price-point category where people are going to keep spending,” he said. “We are not finding it easy to do deals at the moment. For every one like this, there are several that we avoid.”

CapVest, another London-based private equity firm, formed FoodVest in 2006 to combine the businesses of Young’s, Findus and the Seafood Company, a maker of private-label seafood products whose customers include big supermarket chains. It is also Europe’s biggest processor of farmed Atlantic salmon.

Mr Harkjaer said: “This change of ownership is a logical next step in our development. Lion Capital’s specialist consumer experience will be helpful in taking the business to the next level.”

Lion Capital hopes that it can repeat the success that it has enjoyed with Weetabix, the cereal group that it bought for £640 million in 2003. Since then, the group has introduced a range of new products and profits have soared.

Lion also owns stakes in Orangina, the soft-drinks group, and Wagamama, the Japanese noodle bar chain.

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