Thai tuna processor to acquire France's MW Brands

Thai Union Frozen Products Plc (TUF) strengthens further its organisation by bidding to acquire the French seafood canner MW Brands.

 

 

TUF is conducting financial due diligence on the company, and executives declined to comment further, citing a confidentiality agreement. The bid deadline is the end of June.

 

TUF is believed to have a good chance of winning the auction, noting the company's historical success with large acquisitions including the US-based Chicken of the Sea.

 

MW Brands is currently owned by New York-based Trilantic Partners, which was formerly the private equity arm of the defunct investment bank Lehman Brothers. It bought MW Brands from the US food conglomerate HJ Heinz for 425 million in 2006.

 

Tuna is TUF's main business but it also processes and distributes shrimp, squid and other seafood products.

 

If TUF wins the auction, it is expected to have more opportunity in penetrating the EU market adding that MW Brands product sales could further improve the Thai company's margins.

 

MW Brands' earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin was high at 16.9% in 2009, superior to TUF's 8.6%, because of sales of more value-added products in the EU market.