Canada-based seafood company High Liner Foods has announced its acquisition of the Mrs. Paul’s and Van de Kamp’s brands from Conagra Brands.
High Liner Foods confirmed that the acquisition will cost $55 million, a figure that encompasses approximately $36 million worth of inventory. It’s important to note that this price may be subject to adjustments.
In a strategic move, Conagra stated that the agreement includes intellectual property and inventory but does not cover employees or manufacturing sites, allowing for focused operational transitions.
High Liner Foods has previously collaborated with Conagra by manufacturing seafood products under the Mrs. Paul’s and Van de Kamp’s brands at its U.S. facilities. Impressively, this partnership has yielded an average production of 25 million pounds of items, including battered fillets, breaded fish, and fish sticks each year.
The company boasts a robust portfolio of branded retail products available in both the U.S. and Canadian markets. High Liner Foods sells items under various brand names such as High Liner, Fisher Boy, and Mirabel, catering to diverse consumer preferences.
Paul Jewer, the president and CEO of High Liner Foods, emphasized the strategic significance of this acquisition. He stated that it would act as a “catalyst for further growth in the U.S. retail market.” By fully owning these established and respected brands, High Liner intends to capture additional value for its shareholders and guarantee a seamless transition for existing customers.
This acquisition aligns with Conagra’s objectives to reshape its portfolio effectively. Recently, Conagra finalized an agreement to sell its Chef Boyardee business to Hometown Food Company for $600 million in cash, indicating a trend toward divestment for strategic repositioning.
Sean Connolly, the president and CEO of Conagra, remarked, “This divestiture reflects our continued commitment to reshaping our portfolio and investing where we see the best opportunities for growth and innovation.” He further elaborated that the Mrs. Paul’s and Van de Kamp’s brands predominantly operate as a stand-alone seafood business, allowing Conagra to sharpen its focus on enhancing its core frozen offerings.
The products under the Van de Kamp’s and Mrs. Paul’s brands contributed approximately $75 million to Conagra’s net sales for the fiscal year 2024. However, despite this contribution, Conagra reported a slight decline of 1.8% in reported net sales and a 2.1% decrease in organic terms. Notably, the net income experienced a significant drop of 49.1%, totaling $347.7 million.
Headquartered in Chicago, Conagra Brands represents a myriad of well-known labels, including Duncan Hines, Healthy Choice, Marie Callender’s, Slim Jim, and Angie’s Boomchickapop, showcasing its diverse operational presence in the food industry.
