Canada-based seafood group High Liner Foods is to acquire the Mrs. Paul’s and Van de Kamp’s brands from Conagra Brands.
In a statement, High Liner Foods said it is paying US$55m for the brands, an amount that includes around $36m in inventory. The price remains subject to possible adjustments.
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Conagra said the deal covers intellectual property inventory but excludes employees and manufacturing sites.
High Liner Foods has been co-manufacturing seafood products sold under the Mrs. Paul’s and Van de Kamp’s brands at its US-based facilities, producing an average of 25 million pounds per year. Products include battered fillets, breaded fish and fish sticks.
The company markets branded retail products in the US and Canada under a range of labels, including High Liner, Fisher Boy and Mirabel.
Paul Jewer, president and CEO of High Liner Foods, called the deal “highly strategic”, adding it will act as a “catalyst for further growth in the US retail market”.
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By GlobalDataJewer said: “By taking full ownership of these well established and respected brands, we will capture additional value for our shareholders and ensure a seamless transition for existing customers.”
For Conagra, the sale is part of its strategy to “reshape its portfolio”.
Last month, Conagra agreed to sell its Chef Boyardee business to Hometown Food Company for $600m in cash.
Sean Connolly, the president and CEO of Conagra, said: “This divestiture reflects our continued commitment to reshaping our portfolio and investing where we see the best opportunities for growth and innovation.
“Van de Kamp’s and Mrs. Paul’s operate largely as a stand-alone seafood business, and this divestiture allows us to further focus our efforts on strengthening our core frozen offerings.”
The Van de Kamp’s and Mrs. Paul’s products contributed around $75m to Conagra’s fiscal year 2024 net sales.
Conagra reported a 1.8% decline in reported net sales. amounting to a 2.1% decrease in organic terms. Net income fell by 49.1% to $347.7m.
The cpmpany, headquartered in Chicago, owns other brands such as Duncan Hines, Healthy Choice, Marie Callender’s, Slim Jim and Angie’s Boomchickapop.
