High Liner Foods Acquires Mrs. Paul’s and Van de Kamp’s Brands in Strategic $55 Million Deal
On June 6, High Liner Foods Inc., a prominent name in the North American frozen seafood sector, announced a strategic purchase agreement to acquire the well-known Mrs. Paul’s and Van de Kamp’s brands from Conagra Brands for $55 million, which includes approximately $36 million in inventory. This acquisition marks a significant step for High Liner Foods as it seeks to enhance its presence in the U.S. retail market.
Commitment to Growth
This acquisition is subject to a customary inventory adjustment, highlighting High Liner’s commitment to maximizing its investment. Paul Jewer, the president and CEO of High Liner Foods, emphasized the strategic nature of this purchase, stating, “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.”
Jewer added, “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.”
Current Operations
High Liner Foods co-manufactures products for both Mrs. Paul’s and Van de Kamp’s brands, producing an impressive average of 25 million pounds annually at its U.S.-based facilities. This transaction not only secures the volume associated with its current contract with Conagra but is also projected to increase High Liner Foods’ annual volume to approximately 29 million pounds of seafood procured, processed, and sold in the U.S. This aligns with the company’s ongoing strategy to diversify its global supply chain.
Product Offerings
Mrs. Paul’s and Van de Kamp’s stand out as leading brands in the U.S. frozen breaded and battered seafood market, offering a wide range of products. Their line includes crispy battered fillets, breaded fish suitable for sandwiches and tacos, and classic fish sticks, catering to various consumer preferences.
High Liner Foods intends to leverage the strong brand equity and conversion metrics of these brands to enhance sales across its diversified portfolio. This will be achieved through an expanded distribution network reaching new retail customers nationwide.
Transaction Details
The company plans to fund the purchase using its existing Asset-Based Lending (ABL) facility. High Liner Foods anticipates that the transaction will close by the end of June, pending customary closing conditions. Conagra Brands, on the other hand, projects completion by the end of July. The deal encompasses all associated intellectual property and inventory but does not include any employees or manufacturing facilities.
Looking Forward
In concluding his comments, Jewer remarked, “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. We have a clear line of sight to significant synergies that will strengthen our performance over time through operational efficiencies and incremental sales opportunities.”
Conagra Brands’ Perspective
Sean Connolly, President and CEO of Conagra Brands, commented on the divestiture, stating, “This 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.”
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