High Liner Foods buys Mrs. Paul’s and Van de Kamp’s from Conagra for US$55M
High Liner Foods Inc. has struck a deal to acquire Mrs. Paul’s and Van de Kamp’s brands from Conagra Brands for US$55 million.
Lunenburg, N.S.-headquartered High Liner Foods currently co-manufactures the brands’ frozen breaded and battered fish products in the U.S.
The deal secures the volume associated with the company’s current contract with Conagra, which is due to expire in 2027.
It is anticipated to increase High Liner Foods' annual volume from this business to a total of approximately 29 million pounds of fish procured, processed and sold in the U.S.
"This is a highly strategic and compelling opportunity for High Liner Foods that will serve as a catalyst for further growth in the U.S retail market," said Paul Jewer, president and CEO of High Liner Foods, in a press release. "By taking full ownership of these well established and respected brands, we will capture additional value for our shareholders and ensure a seamless transition for existing customers. We look forward to offering choice and value to an expanded portfolio of customers and consumers in the growing U.S market."
The transaction is expected to close at the end of June.
"This strategic transaction is one example of the steps we are taking to position High Liner Foods for future growth, leveraging our healthy balance sheet today to secure profitable volume and incremental growth for years to come. We have a clear line of sight to significant synergies that will strengthen our performance over time through operational efficiencies and incremental sales opportunities," Jewer said.