High Liner acquires Atlantic Trading Co.

High Liner acquires Atlantic Trading Co.

High Liner Foods has acquired US salmon importer Atlantic Trading Co. for an undisclosed sum.

Atlantic Trading imports frozen Atlantic salmon products into the US from Chile and Norway. The group sells salmon fillets and portions in unprocessed and value-added forms into US retail channels.

The company generates annual revenues of US$75-80m, High Liner revealed. High Liner added it expects to "more than double sales" and bring Atlantic Trading's profit profile in line with High Liner's own margin structure.

"Our vision is to be the leading frozen seafood supplier in North America and a key component of our strategy is to acquire profitable and complementary businesses like Atlantic Trading," said Henry Demone, CEO of High Liner Foods.

High Liner said it does not expect to make changes to Atlantic Trading's operations and the acquisition is meant to be immediately accretive to earnings excluding the impact of one-time and interest costs.

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High Liner Foods Announces Acquisition of Atlantic Trading Company
High Liner Foods Announces Acquisition of Atlantic Trading Company

LUNENBURG, NS, Oct. 7, 2014 /CNW/ - High Liner Foods acquires Atlantic salmon importer (all figures are in U.S. dollars ("USD") unless otherwise noted) -
High Liner Foods Incorporated (TSX: HLF) ("High Liner Foods" or "the Company"), the leading North American value-added frozen seafood company, announced today it has acquired the business of Atlantic Trading Company, LLC ("Atlantic Trading").

Atlantic Trading is one of the largest importers of frozen Atlantic salmon into the U.S. and sells its products into the U.S. retail market. Its premium quality Atlantic salmon fillets and portions are sustainably sourced from Chile and Norway and sold in frozen raw (unprocessed) and value-added formats. Atlantic Trading is also a large importer of fresh salmon products.
Atlantic Trading's revenues range between $75 million and $80 million annually. High Liner Foods expects the acquisition to more than double its sales in salmon products and for the margins on Atlantic Trading products to be comparable to those achieved on similar products sold by the Company.

"Our vision is to be the leading frozen seafood supplier in North America and a key component of our strategy is to acquire profitable and complementary businesses like Atlantic Trading," said Henry Demone, CEO of High Liner Foods. "Atlantic Trading sources some of the finest Atlantic salmon available today and will enhance product offerings to our customers."
"Selling Atlantic Trading to High Liner Foods is a natural fit. Atlantic Trading's reputation is built on providing consumers with high-quality salmon selections and an unwavering commitment to sustainability," explained Mr. Knut Skabo, President of Atlantic Trading. "I am confident High Liner Foods will continue these efforts and look forward to working with them to ensure a seamless change in ownership."

High Liner Foods does not anticipate making any changes to the operations of Atlantic Trading following the acquisition and expects the acquisition will be immediately accretive to earnings, after considering the impact of incremental interest costs related to financing the acquisition, and excluding the impact of one-time costs associated with the acquisition which will be expensed in the current period. The acquisition will be financed with existing credit facilities.

Original source: High Liner Foods