Umios, the Japan-based manufacturer formerly known as Maruha Nichiro, has continued its buying streak with a deal for Canadian seafood peer High Liner Foods.
Announcing the deal yesterday (26 October), the Tokyo-listed group outlined plans to position High Liner as its core North American platform.
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It agreed to pay C$27 per share in cash for High Liner, valuing the Nova Scotia-based business at C$804m (US$573.6m).
The acquisition combines Umios’ seafood sourcing network, including its roughly 26% Alaska pollock stocks quota in the US Bering Sea, with High Liner’s downstream reach.
The Japanese company expects “significant” synergies from the deal, saying it will add the necessary “value-added” processing and distribution infrastructure.
The integration will create a “vertically integrated seafood business spanning the value chain from procurement to the consumer’s table”, it said.
Paul Jewer, president and CEO of High Liner Foods, said. “We know Umios through a longstanding commercial relationship, and Umios knows the value of our expertise, brands and customer relationships.
“Joining a global seafood leader gives us the scale, sourcing capabilities and investment capacity to pursue our ambitions in an industry poised for growth.”
High Liner processes and sells frozen seafood to retail and foodservice customers across the US and Canada under its own brands and private label. It has three production plants.
For the year through December, it generated consolidated net sales of approximately US$1.03bn. Profit attributable to owners of the parent for the full year stood at US$36.5m.
The company’s portfolio includes its namesake High Liner label, as well as Mrs. Paul’s and Van de Kamp’s, both of which were acquired from Conagra Brands last year.
Umios has committed to maintaining the company’s Nova Scotia headquarters alongside its workforce, brands and customer relationships.
Masaru Ikemi, CEO of Umios, added: “Combining with High Liner Foods will fundamentally transform Umios.
“By pairing our longstanding leading position in major upstream seafood markets in Alaska with High Liner Foods’ iconic consumer brands, value-added processing capabilities and extensive downstream channels, we expect to create a complete, vertically integrated value cycle in North America and drive Umios’ sustainable, long-term growth.”
The acquisition will proceed via a court-approved plan of arrangement and has been “unanimously” endorsed by High Liner’s board.
Completion is targeted for January, contingent on 75% shareholder approval, antitrust clearances, and other closing conditions.
Shareholders of around 45.4% of High Liner’s outstanding stock, including Thornridge’s 41.4% interest, have agreed to vote in favour of the deal.
The Canadian firm will be delisted from the Toronto exchange and become a wholly owned Umios subsidiary upon closing.
As well as seafood, Umios is also a supplier of meat products but has recently been building a presence in pet food.
It took a 25.1% stake in Thai pet food and seafood supplier Pataya Food Industries (PFI) in September, adding to the company’s June deal for 51% of Malaysia’s Pet World International.
