North American value-added frozen seafood company High Liner Foods Incorporated has entered into a purchase agreement to acquire the Mrs Paul’s and Van de Kamp’s brands of frozen breaded and battered fish products from Conagra Brands for US$55 million, inclusive of approximately $36 million in inventory.
The purchase price is subject to a customary inventory adjustment.
“This is a highly strategic and compelling opportunity for High Liner Foods that will serve as a catalyst for further growth in the US retail market,” High Liner Foods President and CEO Paul Jewer said. “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 US market.”
High Liner currently co-manufactures products for Mrs Paul’s and Van de Kamp’s brands at its US based manufacturing facilities, an average of 25 million pounds annually.
The new transaction secures the volume associated with the company’s current contract with Conagra which is due to expire in 2027. It is anticipated to increase High Liner Foods’ annual volume from this business to a total of approximately 29 million pounds of fish procured, processed and sold in the US, aligned with the company’s strategy to continue to diversify its global supply chain.
Mrs Paul’s and Van de Kamp’s are leading brands in the frozen breaded and battered category in US retail. High Liner Foods said it intends to leverage their strong conversion metrics and brand equity 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.
The company will fund the transaction from its existing ABL facility. The transaction is expected to close at the end of June 2025, subject to customary closing conditions.
“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,” Jewer said.
BMO Capital Markets acted as exclusive financial advisor to High Liner Foods in connection with the transaction. Goodwin Procter LLP served as legal counsel to High Liner Foods.
