26 December, 2014, 12:00 am
THAI Union Frozen Products, owner of Chicken of the Sea, is acquiring Bumble Bee Seafoods, a major seller of canned tuna in the US, for $US1.5billion ($F3b), sandwiching two of the biggest tuna packagers in the country.
Thai Union Frozen Products is the world’s biggest producer of canned tuna and it’s looking to double revenue through overseas acquisitions.
The purchase, which is Thai Union’s largest ever, will give the company control of some of North America’s most well-known seafood lines — including two of the three biggest canned tuna brands in the US — in its quest to reach revenue of US$8b by 2020.
The deal marks the latest instance of consolidation in a global seafood industry that analysts say has been in flux over the past few years, as companies change the way they manage supplies and costs to better cater to shifting consumer demand.
The transaction is likely to be completed in the second half of next year, subject to approval from US antimonopoly authorities, said Thai Union, whose clients include Wal-Mart Stores and Costco Wholesale.
Thai Union president and CEO Thiraphong Chansiri, whose company has operated in the US for over 17 years, said he expected a “positive response” from the authorities.