Sector News

Thai Union Frozen Products to Buy Bumble Bee

December 19, 2014
Food & Drink
Thai Union Frozen Products PCL, one of the world’s largest seafood companies, said Friday it is acquiring U.S.-based Bumble Bee Seafoods LLC for $1.51 billion.
 
TUF said in a statement that the move is aimed at improving “operating efficiencies” in its sourcing and production, and making further advances into North American markets.
 
“The deal is the largest acquisition in the history of our company and one of the most exciting external growth propositions,” said Thiraphong Chansiri, TUF’s chief executive, in a statement. Upon completion, the deal would be immediately accretive to TUF’s earnings and cash flows, and would increase group revenue by about 25%, the CEO said.
 
The acquisition of Bumble Bee Seafoods–one of the largest seafood companies in North America–from private-equity firm Lion Capital will add to TUF’s list of international businesses, including Chicken of the Sea and MW Brands.
 
“This combination is good news for our customers, consumers and the industry as a whole,” Chris Lischewski, chief executive of Bumble Bee Seafoods, said in a statement.
 
Bumble Bee Seafoods, which is based in San Diego and employs 1,300 people, records annual sales of approximately $1 billion and an estimated earnings before interest, tax, depreciation and amortization of $145 million in 2014, TUF said.
 
The Thai company’s latest deal “simply makes sense. It should benefit the company’s shareholders and its own business,” said Charti Phrawphraikul, an analyst from Phatra Securities in Bangkok.
 
TUF said the deal’s closing is subject to approval by the U.S. antitrust authorities and other closing conditions. The companies said they expect the transaction will close in the second half of 2015.
 
Two of Thailand’s major banks, Bangkok Bank PCL and Siam Commercial Bank PCL, have agreed to offer TUF a one-year bridge loan valued at $1.51 billion, according to Pimolpa Suntichok, a vice president at SCB.
 
By Nopparat Chaichalearmmongkol 
 

comments closed

Related News

May 21, 2022

Cécile Béliot becomes Bel Group CEO

Food & Drink

Cécile Béliot has assumed the role of Bel Group chief executive officer, following the decision to separate the roles of chairman and CEO. The separation of the functions will enable Bel Group to develop in three areas of healthy snacking. Meanwhile, the company’s former CEO, Antoine Fiévet, has had his mandate renewed as chairman of the board.

May 21, 2022

“Corporate greed and dereliction of duty”: FDA commissioner slammed over infant formula shortage

Food & Drink

US Food and Drug Administration (FDA) Commissioner Dr. Robert Califf was grilled by lawmakers during a House Appropriations subcommittee hearing, where he was slammed over the agency’s handling of the escalating infant formula shortage.

May 21, 2022

Sweegen hails antioxidants and bitter blocking tech a turning point for sugar reduction and healthy aging

Food & Drink

Sweegen is ramping up its efforts to reduce sugar across F&B applications while simultaneously tapping into the benefits of using antioxidants and bitter blocking technology. Speaking to FoodIngredientsFirst, Casey McCormick, vice president of global innovation at Sweegen, says product developers can find a broad range of solutions in Sweegen’s nature-based sweetener systems as brands elevate better-for-you foods.