High Liner acquires US importer and distributor
High Liner Foods acquired Rubicon Resources, a California-based importer and distributor of sustainably sourced shrimp
Lunenburg, NS – High Liner Foods Incorporated has acquired a Culver City, Calif.-based seafood company.
In a statement, High Liner, Canada’s largest value-added frozen seafood company, says it acquired Rubicon Resources LLC, a privately held company that imports and distributes sustainably sourced shrimp products for the private label retail market in the US.
High Liner says the “acquisition will provide it with a strong platform for growth in this key species.”
Keith Decker, president and CEO of High Liner, says Rubicon “supports our growth strategy by expediting our diversification into aquaculture species like shrimp that are experiencing higher growth rates in North America, and will also add immediate shareholder value through increased sales and earnings.”
In 2016, Rubicon had annual sales of approximately US$234 million. “The purchase price for Rubicon was US$107 million prior to transaction fees, and was settled 70 per cent in cash and 30 per cent in High Liner Foods common shares,” says the statement.
The transaction also includes “a five-year supply agreement with Rubicon’s supply partners based on mutually acceptable terms and a three-year employment contract with Brian Wynn to continue as Rubicon’s president.”