South Carolina, Red Lobster Restaurant
A Red Lobster restaurant in South Carolina. Jeff Greenberg — UIG via Getty Images

The Maker of ‘Chicken of the Sea’ Just Bought a Stake in Red Lobster

Oct 11, 2016

Thai Union Group, the world's biggest producer of canned tuna, said it has bought a minority stake in U.S. seafood chain Red Lobster Seafood Restaurants in a $575 million deal to expand in the United States, its biggest market.

The company, known for its "Chicken of the Sea" tuna brand, said on Monday it had taken a 25% interest in the restaurant chain, with the option to acquire an additional 24% through the conversion of preferred shares.

The Thai company paid $230 million for the 25% stake, and $345 million for the preferred shares, which are convertible to common stock within 10 years.

Private equity firm Golden Gate Capital will remain Red Lobster's majority owner and retain operational control, Thai Union said.

Get Term Sheet, Fortune’s daily email about deals and deal-makers.

Thai Union (tufuf) has been seeking to boost its business through acquisitions after it scrapped a $1.5 billion deal to buy U.S. rival Bumble Bee Seafoods in December. The Thai company is a supplier to Red Lobster, as well as to Wal-Mart Stores (wmt) and Costco Wholesale (cost).

CEO Thiraphong Chansiri told reporters in Bangkok on Tuesday the company is considering issuing bonds and seeking long-term loans this year to refinance the $575 million in bridge loans it took to fund the acquisition so that its debt-to-equity ratio does not exceed 1.1 times.

Thai Union has received six-month bridge loans of 20 billion baht ($575 million) from three domestic banks - Bangkok Bank , Siam Commercial Bank and Bank of Ayudhya - for the purchase, Thiraphong said.

The Thai firm is on track to achieve a revenue target of $8 billion by 2020 and expected revenue of $5 billion in 2016, the CEO said.

Golden Gate Capital acquired Red Lobster for about $2.1 billion in July 2014 from Darden Inc, the parent of the Olive Garden chain of restaurants.

Thai Union bought Canadian lobster processor Les Pecheries de Chez Nous for an undisclosed amount earlier this year.

All products and services featured are based solely on editorial selection. FORTUNE may receive compensation for some links to products and services on this website.

Quotes delayed at least 15 minutes. Market data provided by Interactive Data. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Terms & Conditions. Powered and implemented by Interactive Data Managed Solutions