HF Foods Group, a distributor of international foodservice solutions to Asian restaurants and other businesses across the U.S., is acquiring Searay Foods Inc., a leading Canadian importer and distributor of ethnic and specialty frozen seafood, for approximately CAD 47.9 million (USD 34 million, EUR 30 million).
The transaction marks the first international expansion for HF Foods, based in Las Vegas, Nevada, U.S.A. HF Foods will acquire up to 100 percent of the outstanding equity interests of Searay, based in Richmond, British Columbia, Canada, for the sales price of approximately CAD 9.6 million (USD 6.8 million, EUR 6 million), which is approximately five times Searay's 2025 adjusted EBITDA.
“Searay has built an exceptional reputation over 25 years as a leading Canadian distributor of ethnic frozen seafood, with deep supplier relationships, a trusted multi-brand portfolio, and industry-leading margins,” HF Foods President and CEO Felix Lin said. “This transaction is consistent with the disciplined, accretive M&A strategy we have communicated to investors, and we are excited to combine Searay’s expertise in frozen seafood with HF Foods’ national distribution infrastructure to unlock meaningful cross-selling and supply chain synergies across both businesses.”
Searay has demonstrated a revenue compound annual growth rate of approximately 15 percent from FY 2019 to FY 2024 and strong normalized EBITDA margins of approximately 14 to 15 percent. That positive trajectory is supported by disciplined inventory management and long-tenured supplier and customer relationships, HF Foods said.
Searay’s recently established U.S. operations, including planned Los Angeles, California-based direct import operations, are “expected to benefit from HF Foods’ existing distribution network, sourcing scale, and West Coast infrastructure,” HF Foods said.
In turn, Searay’s ethnic frozen seafood offerings – which include its Searay Foods, Thai Best, Pinoy’s Best, Smart Fish, Diamond Shrimp, and Gold Label brands – will broaden HF Foods’ specialty product assortment and deepen its presence in the seafood category, which represents approximately 36 percent of its existing net revenue.
The acquisition is the first step in HF Foods’ long-stated strategy to expand its platform beyond the U.S., Lin said. The company previously disclosed a “proven M&A playbook of geographic expansion, increased distribution capabilities, and new product categories,” HF Foods said.
The transaction is expected to close in Q3 2026, subject to customary closing conditions and regulatory approvals.
Following the closing, Searay's existing management team, led by incoming CEO Derick Ngan, is expected to continue to lead Searay's day-to-day operations as a subsidiary of HF Foods.
“We are proud of what we have built at Searay over the past 25 years, and we believe HF Foods is the right partner to carry that legacy forward,” Searay co-presidents and founders Jack and Philip Chan said. “HF Foods’ scale, distribution network, and shared commitment to quality and customer service make this a natural combination. We look forward to working alongside the HF Foods team to accelerate Searay’s growth, including our ongoing expansion into the U.S. market.”
