Lunenburg, Nova Scotia-based High Liner Foods has completed its acquisition of the Mrs. Paul’s and Van de Kamp’s brands from Conagra Brands.
"The completion of this acquisition marks an exciting milestone for High Liner Foods," High Liner Foods President and CEO Paul Jewer said in a release. "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."
High Liner initially announced the purchase at the beginning of June for USD 55 million (EUR 46.7 million). Roughly USD 36 million (EUR 30.6 million) of that purchase price accounted for inventory; however, a customary inventory adjustment revealed just USD 23.8 million (EUR 20.2 million) of inventory. High Liner said the difference reflects normal seasonal shifts in inventory.
Accordingly, the adjusted purchase price is USD 42.4 million (EUR 36 million), but High Liner noted that the price could be adjusted again following a further post-closing adjustment.
High Liner had been co-manufacturing seafood for the Mrs. Paul’s and Van de Kamp’s brands under an agreement with Conagra set to expire in 2027. By purchasing the two seafood brands, High Liner ensures that production continues at its U.S. manufacturing facility.
High Liner said it expects to produce 29 million pounds of seafood from the acquired brands annually for sale in the U.S.
“The transaction is estimated to deliver USD 11 million (EUR 9.3 million) annual run rate adjusted EBITDA in 2027, inclusive of current contract margin, incremental contribution margin and net cost synergies, with potential for further growth,” High Liner said in a release.
Jewer previously said the acquisition was a strategic investment for the company.
"These two leading products are a welcome addition to our existing portfolio of consumer-favorite frozen seafood brands and further diversify our product offerings in the U.S. retail market," Jewer said. "High Liner Foods has been co-manufacturing products for Mrs. Paul’s and Van de Kamps for some time now, which will help make for a seamless transition for all involved.”
