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 
 

Related News

April 17, 2021

Ramadan fasting during COVID-19: Experts weigh in on immunity research

Food & Drink

Fasting during the COVID-19 pandemic brings new considerations, but a recent research review from the University of Doha, Qatar, suggests fasting during Ramadan may have a positive impact on immunity strength.

April 17, 2021

Unilever packaging director: E-commerce boom provides opportunities for new refillable packaging formats

Food & Drink

Ahead of the Rethinking Materials Summit (19-20 May), PackagingInsights sits down with Hugo Menilo, Unilever’s global foods packaging director to discuss their explorations in bio-based packaging, advanced recycling, refillable e-commerce solutions and more.

April 17, 2021

Heineken pledges carbon neutrality across value chain by 2040

Food & Drink

The announcement marks the first in a series of refreshed Brew a Better World ambitions, which form part of the company’s new EverGreen growth strategy.

Send this to a friend