Thai company buys French smoked salmon giant
The Nation September 5, 2014 1:00 am
Thai Union Frozen Products Plc has agreed to acquire 100 per cent of French company MerAlliance, a leading European smoked salmon producer with annual sales of US$220 million (Bt7 billion).
The deal, which is expected to close next quarter, is a strategic driver for TUF. The company aims to leverage MerAlliance's position as a leading smoked salmon player in Europe and its strong growth track record to expand its base within the chilled seafood category in Europe.
This transaction will reinforce TUF's subsidiary MW Brands' position in the European market. MW Brands is a European leader in ambient seafood products with well-established consumer brands - Petit Navire, John West, Parmentier and Mareblu - in more than 50 countries.
The addition of MerAlliance will be a key step towards TUF's goal to double the group's revenue by 2020. This is the first in a series of deals that the company expects to make over the coming months. It is expected to contribute to TUF's earnings by increasing TUF's group revenues by an estimated 5-6 per cent.
Its value is confidential until the close of the deal, the company's public relations officer said yesterday.
Thiraphong Chansiri, president and CEO of TUF, said this move makes perfect sense in terms of strategy and timing.
"The new partnership will enable us to develop further growth opportunities in chilled smoked fish specialties by building on each partner's strengths and common grounds," he said.
The company would continue to focus on strengthening its competitiveness within its six strategic business categories - tuna, shrimp and shrimp-related, sardine and mackerel, pet food, value-added products and certainly, salmon, which is among the highest growth potential categories for the group.
"Our strategy is to look for hidden pearls within each of our strategic business categories that can strengthen our position and act as platforms for growth. This is our first acquisition as part of this strategy, and I look forward to sharing additional news with you in due course," he said.
MerAlliance and TUF share the same core values in terms of sustainable sourcing, innovation and product responsibility. The group will welcome MerAlliance with great excitement and they will undoubtedly benefit from being part of one of the most resilient seafood companies in the world, he added.
The French company is the fourth largest smoked salmon player in Europe. It has a strong sales presence in France and in the UK, and production facilities in France, Scotland and Poland.
"The MerAlliance acquisition represents a tremendous opportunity for MW Brands' expansion strategy and will deliver significant incremental growth. Our objective is to build on each partner's expertise and people capabilities to significantly expand into the chilled seafood category,"said Elisabeth Fleuriot, CEO of MW Brands.