Nova Scotia seafood giant acquires U.S. competitor
High Liner Foods buys Massachusetts-based American Pride Seafoods
Lunenburg, N.S. – High Liner Foods has acquired American Pride Seafoods LLC from Seattle, Wash.-based American Seafoods Group LLC for approximately US$50 million.
The deal includes US$34.5 million in cash for American Pride’s inventory, plant and equipment, and excludes roughly US$15.5 million in accounts receivables, for a total of about US$50 million.
New Bedford, Mass.-based American Pride Seafoods processes scallops and value-added frozen seafood for foodservice. Sales for 2012 were approximately US$190 million.
The acquisition is expected to strengthen High Liner’s position in the foodservice sector of the U.S. value-added frozen seafood industry. “Our vision is to be the leading frozen seafood supplier in North America and a key component of High Liner Foods’ strategy is profitable growth through acquisitions like American Pride, that complement our business and should strengthen our leadership position within the seafood industry,” says High Liner CEO Henry Demone.
High Liner says it will delay the integration of American Pride into its business, and instead will operate the company without significant changes throughout 2014. This will allow it to finish integrating its last acquisition – Icelandic USA – which it made in late 2011. The company also notes that it expects to improve American Pride’s operating margins, traditionally lower than those of High Liner Foods, once the company is fully integrated into its operations.