Umios, the Japan-based seafood producer previously known as Maruha Nichiro, is extending its acquisition drive through an agreement to purchase Canadian rival High Liner Foods.
The Tokyo-listed company announced the transaction on 26 October and said it intends to make High Liner its principal operating platform in North America.
Under the terms, Umios will pay C$27 in cash for each High Liner share, placing an equity value of approximately C$804m (US$573.6m) on the Nova Scotia-headquartered business.
The transaction will bring together Umios’ seafood procurement network, including its approximately 26% share of the Alaska pollock quota in the US Bering Sea, and High Liner’s established processing, distribution and customer operations.
Umios anticipates “significant” synergies, with High Liner providing the “value-added” processing and distribution infrastructure required to expand its presence further along the seafood value chain.
The combination is expected to establish a “vertically integrated seafood business spanning the value chain from procurement to the consumer’s table”, according to Umios.
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 manufactures and markets frozen seafood products for retail and foodservice customers in the US and Canada. Its portfolio includes branded and private-label products, supported by three production facilities.
In the year ending December, the company recorded consolidated net sales of roughly US$1.03bn. Full-year profit attributable to owners of the parent company was US$36.5m.
Its brand portfolio comprises High Liner, alongside Mrs. Paul’s and Van de Kamp’s, which were acquired from Conagra Brands last year.
Umios has said High Liner will retain its headquarters in Nova Scotia, as well as its employees, brands and existing customer relationships.
Masaru Ikemi, CEO of Umios, said: “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 is structured as a court-approved plan of arrangement and has received “unanimous” backing from High Liner’s board of directors.
Closing is expected in January, subject to approval from at least 75% of shareholders, regulatory clearance under antitrust rules and the satisfaction of other customary conditions.
Investors representing approximately 45.4% of High Liner’s issued shares, including Thornridge’s 41.4% holding, have committed to vote in support of the transaction.
Once completed, High Liner will be removed from the Toronto Stock Exchange and operate as a wholly owned subsidiary of Umios.
In addition to its seafood operations, Umios supplies meat products and has recently expanded into the pet food sector.
In September, it acquired a 25.1% stake in Thailand-based pet food and seafood supplier Pataya Food Industries (PFI). The investment followed its June agreement to purchase 51% of Malaysia’s Pet World International, further strengthening Umios’ position in Southeast Asian pet food markets.
