Thai Union Frozen Products acquires US seafood company

THAI Union Frozen Products Public Company Limited (TUF) makes its biggest purchase to date, acquiring 100% of the shares of US company, Bumble Bee Foods LLC (Bumble Bee Seafoods), for a total price of $1.51 billion. North America’s largest branded shelf-stable seafood producer is owned by the Pan-Atlantic private equity firm, Lion Capital.

Based in Thailand, TUF is the world’s largest processor of shelf-stable tuna products. Its purchase of Bumble Bee Seafoods expands its portfolio in the United States and Canada, and will allow it to improve efficiencies in raw material sourcing and production, as well as advance its capabilities in innovation and new product development.

“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 president and CEO. “Upon completion, the transaction will be immediately accretive to TUF’s earnings and cash flows and will increase TUF’s group revenues by approximately 25%.”

Thiraphong Chansiri, TUF president and CEO

Annual sales of Bumble Bee Seafoods are approximately $1 billion, and estimated EBITDA is $145 million in 2014. The company in San Diego, California, has a workforce of more than 1,300 people, producing and selling canned, pouched and frozen seafood products across the United States and Canada.

"I have always believed that Bumble Bee and Thai Union share a strong vision for innovation, operational excellence, sustainability and value for our consumers, making this combination good news for customers, consumers and the industry as a whole," said Chris Lischewski, president and CEO of Bumble Bee Seafoods. "Importantly, we commit to uphold the indispensable role as one of the world's leaders in providing responsibly harvested and processed seafood."

The closing of the acquisition remains subject to clearance by the United States antitrust authorities and other closing conditions set forth in the acquisition agreement. While a definitive closing date cannot yet be determined, Thai Union Group and Bumble Bee Seafoods expect that the transaction will close in 2H/2015.