High Liner Foods has finalized its acquisition of the Mrs. Paul’s and Van de Kamp’s frozen seafood brands from Conagra Brands, Inc. The transaction was completed for an adjusted purchase price of USD $42.4 million, down from the initially disclosed USD $55 million.
The adjustment in purchase price reflects an estimated USD $23.8 million worth of inventory acquired by High Liner Foods at closing, as opposed to a normalized target of $36 million. This adjustment is attributed to typical seasonal shifts in inventory and remains subject to further post-closing adjustments.
“The completion of this acquisition marks an exciting milestone for High Liner Foods,” said Paul Jewer, President and Chief Executive Officer of High Liner Foods. “As we integrate these two trusted brands into our portfolio, our focus now shifts to realizing synergies, expanding our reach across the U.S. retail market, and building an even stronger platform for long-term, sustainable growth.”
The acquisition ensures that High Liner Foods secures the volume linked to its co-manufacturing agreement with Conagra, which expires in 2027. The company anticipates annual sales volume from this business to be around 29 million pounds of seafood in the U.S., offering expanded distribution and access to new national retail customers. It is expected that the transaction will generate approximately USD $11 million annual run rate Adjusted EBITDA by 2027.
Funding for this purchase came through High Liner Foods’ existing asset-based lending facility, enabling the company to maintain a robust balance sheet and healthy leverage position.
Adjusted EBITDA is used by High Liner Foods as a performance measure because it approximates cash generated from operations before capital expenditures and changes in working capital while excluding non-routine items not representative of ongoing operations.
This announcement includes forward-looking statements about anticipated benefits and synergies from the acquisition and future financial performance but also acknowledges potential risks such as integration challenges or economic conditions affecting consumer spending habits.
High Liner Foods Incorporated is a major North American processor and marketer of value-added frozen seafood products available under various brand labels across grocery stores in Canada and the United States.