Packages of fish fillets from Van de Kamp's, one of the two brands acquired by High Liner Foods, in a supermarket.
Photo: Adobe Stock.
The Canadian value-added frozen seafood processing and marketer company High Liner Foods Inc. announced the signing of a purchase agreement to acquire Mrs. Paul's and Van de Kamp's breaded and battered frozen fish product brands from Conagra for USD 55 million. Subject to a customary inventory adjustment, the company stated that the purchase price includes approximately USD 36 million in inventory.
Currently, High Liner Foods already co-manufactures products for the Mrs. Paul's and Van de Kamp's brands at its U.S. production facilities. In its release, the company stated that this transaction secures the volume associated with its current contract with Conagra, which expires in 2027.
In line with the Canadian company's strategy to further diversify its global supply chain, High Liner Foods' annual volume from this business - an average of 25 million pounds annually - is expected to increase to approximately 29 million pounds of fish purchased, processed, and sold in the U.S.
"This is a highly strategic and compelling opportunity for High Liner Foods that will serve as a catalyst for further growth in the U.S. retail market," stated Paul Jewer, President and Chief Executive Officer of High Liner Foods.
"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. We look forward to offering choice and value to an expanded portfolio of customers and consumers in the growing U.S market," he added.
As mentioned above, Mrs. Paul's and Van de Kamp's are leading brands in the breaded and battered frozen products category in the U.S. retail market, with high consumer recognition.
High Liner Foods said it intends to leverage the strong conversion metrics and brand equity of these brands to drive incremental sales of its diversified portfolio of branded and value-added retail products through an expanded distribution network and a significant national base of new retail customers. It anticipates a period of approximately 12 to 18 months to achieve synergies in its operations.
"This strategic transaction is one example of the steps we are taking to position High Liner Foods for future growth, leveraging our healthy balance sheet today to secure profitable volume and incremental growth for years to come," Paul Jewer explained.
"We have a clear line of sight to significant synergies that will strengthen our performance over time through operational efficiencies and incremental sales opportunities," the President and CEO of High Liner Foods concluded.
A leading processor and marketer of value-added frozen seafood in North America, the company, which will finance the transaction through its existing ABL credit facility, said it expects the acquisition to close by the end of June 2025.
