TUF and Its Subsidiary MW Brands Announce an Agreement to Acquire MerAlliance -a Leading Smoked-Salmon Producer in Europe
- THAI UNION FROZEN PRODUCTS REINFORCES ITS GLOBAL LEADERSHIP POSITION WITHIN THE SEAFOOD SECTOR WITH THE PURCHASE OF MERALLIANCE, ONE OF THE LEADING SMOKED-SALMON PRODUCER IN EUROPE – THE WORLD’S LARGEST SMOKED SALMON MARKET.
- THE DEAL WILL HAVE A POSITIVE EFFECT ON TUF’S EARNINGS BOTH SHORT-TERM AND LONG-TERM WITH AN ESTIMATE OF 5-6 PERCENT INCREASE IN TUF’S GROUP REVENUES.
- MERALLIANCE REPRESENTS AN EXCELLENT PLATFORM FOR TUF’S EUROPEAN BUSINESS- DRIVING AN ORGANIC GROWTH WITHIN THE CHILLED FISH CATEGORY.
Bangkok - 4 September 2014 -- Thai Union Frozen Products Public Company Limited or TUF, today announced that it has entered into an agreement to acquire 100 Percent of MerAlliance, a leading European smoked-salmon producer which posted sales of USD 220 million as of ending 31 March, 2014. The deal 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 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 which produces well-established consumer brands namely; Petit Navire, John West, Parmentier, and Mareblu whose brands are present in more than 50 countries.
The acquisition of MerAlliance will be a key step towards TUF’s goal to double the group’s revenue by 2020. This transaction is first in a series of deals that the company expects to make over the coming months. It is expected that the deal will have a positive contribution to TUF’s earnings by increasing TUF’s group revenues with an estimation of 5-6 percent.
According to Thiraphong Chansiri, President and CEO of TUF, “This acquisition makes perfect sense, both 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. Moreover, we continue to focus on strengthening our competitiveness within TUF’s six strategic business categories which are tuna, shrimp & shrimp-related, sardine & mackerel, pet food, value-added products and certainly, salmon, which is amongst 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.
MerAlliance and our group share the same core values, in terms of sustainable sourcing, innovation and product responsibility. We will welcome MerAlliance with a great excitement and they will undoubtedly benefit from being a part of one of the most resilient seafood companies in the world.” Mr. Chansiri Concluded.
MerAllaince a French-based company generated USD 220 million sales in the fiscal year ending 31 March 2014, and is the 4th largest smoked salmon player in Europe. MerAlliance has a strong sales presence in France and in the UK, and production facilities in France, Scotland and Poland. The three production facilities are strategically located to benefit from local fish sources, as well as being in close proximity to customers and consumers. The company offers a vast range of high quality chilled smoked fish products.
“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. Both the MW Brands and MerAlliance teams are excited to work together to set up a solid foundation for further growth in the chilled seafood category based on common beliefs in innovation, quality, sustainability, consumer and customer focus.” said Elisabeth Fleuriot, CEO of MW Brands.
Gilles Charpentier, President of MerAlliance added “MerAlliance is extremely happy to join the TUF / MW Brands family, as our people share the same values and passion for seafood products. It is another important step for MerAlliance, capitalising on our 40 years of experience and we are extremely confident that by joining forces together, we will accelerate our successful journey in the chilled seafood business.”
TUF’s agreement to acquire 100 percent of MerAlliance is subject to customary closing conditions and the transaction is expected to be completed in Q4 2014.
About MerAlliance
With more than 40 years of experience in the category, MerAlliance is the n°4 smoked salmon player in Europe. MerAlliance is the leader in the private label smoked salmon market in France and Netherlands and n°4 in the UK. . It is well known for its high quality product range, efficient supply chain, strong sustainability commitment, superior innovation capabilities and product excellence.
