BANGKOK (Oct 11): (Reuters) Thai Union Group PCL, the world's biggest producer of canned tuna, said it has bought a minority stake in US seafood chain Red Lobster Seafood Restaurants in a US$575 million (RM2.39 billion) 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 US$230 million for the 25% stake, and US$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.

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

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 US$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 (RM2.36 billion) 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 US$8 billion by 2020 and expected revenue of US$5 billion in 2016, the CEO said.

Golden Gate Capital acquired Red Lobster for about US$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.