Thai Union Group (TUF), the world’s largest processor of shelf-stable tuna products and the owner of major brands including John West and Chicken of the Sea, has announced that it has entered into a binding agreement to acquire 100% of the shares of North America’s largest branded shelf-stable seafood company Bumble Bee Foods.
The acquisition of Bumble Bee Seafoods will allow TUF to improve operating efficiencies in the areas of raw material sourcing and production, as well as advancing in innovation and new product development, particularly in North American markets, the company said in a statement.
Bumble Bee is the latest and largest purchase secured by TUF. The BBC reports that the firm has been busy acquiring a number of other companies over the course of 2014, including Norwegian seafood firm King Oscar and French smoked salmon producer MerAlliance. It is purchasing Bumble Bee from its current owners Lion Capital for a total price of $1.51 billion.
Commenting on the deal, Thiraphong Chansiri, President and CEO of TUF said: “The deal is the largest acquisition in the history of our company and one of the most exciting external growth propositions. Upon completion, the transaction will be immediately accretive to TUF’s earnings and cash flows and will increase TUF’s group revenues by approximately 25%”.
“Bumble Bee Seafoods is a leading player in North American shelf-stable seafood; combining the business with Thai Union Group will lower costs, improve efficiency, and create the global leader in the shelf-stable seafood space. Our deep commitment is to define the future of innovative seafood products for many generations to come”.
Source: Thai Union Group / BBC.