November 3, 2014
Thailand''s TUF completes acquisition of two European seafood companies
Thailand-based Thai Union Frozen Products (TUF), the world''s biggest producer of canned tuna, has announced the complete acquisition of 100% shares of France''s smoked salmon producer MerAlliance and Norway''s seafood firm King Oscar.
TUFdirectors Kraisorn Chansiri and Chuan Tangchansiri made the disclosure in a November 3, 2014, letter to the Stock Exchange of Thailand. Still, they did not disclose the acquisition costs of the two companies.
Thai Union Frozen, which makes "Chicken of the Sea" brand tuna, wants to increase sales to $8 billion by 2020, mainly through overseas acquisitions. The company has targeted $5 billion in sales next year, up from an expected $4 billion in 2014.
Aside from smoked salmon, MerAlliance also produces other seafoodproducts, including smoked marlin, halibut, haddock, and swordfish, and marinated raw fish products, among other things. The company, formerly known as Armoric S.A. , was founded in 1971. It is based in Quimper, France.
Privately owned King Oscar, on the other hand, is one of the world''s biggest suppliers of canned fish, with sales worth US$80 million and an EBITDA margin of around 12% in 2013.
King Oscar has two production facilities in Poland and Norway with a total combined capacity of 135 million cans. Its premium-quality sardines are bestsellers in Norway, the United States and Australia.
In buying the two companies, TUF is said to be looking to increase earnings overseas to offset slowing sales at home.
Thiraphong Chansiri, TUF president and chief executive, had earlier called the King Oscar acquisition as a "relatively small, but highly strategic acquisition for our group".
"It will give us a unique position and an opportunity to build ''King Oscar'' brand in the market worldwide and into our global brand portfolio," he said, adding that apart from organic growth, "mergers and acquisitions will continue to be the company''s key strategy for business expansion in both short and long term."