July 6, 2016

Thai Union Group buys into Canadian lobster processor

Leading seafood supplier Thai Union Group (TU) said Tuesday, July 5, that it would acquire a majority stake in Canadian lobster processor Les Pecheries de Chez Nous (Chez Nous).

Francois "Frankie" Benoit, the existing owner and CEO of Chez Nous, will retain a minority share. The company recorded sales of around CAD50 million (US$38.5 million) in 2015.

Chez Nous, based in New Brunswick, Canada has direct relationships with fishermen in Canada and Maine in the northeastern US. It has a processing facility strategically located at the Gulf of St. Lawrence, and is investing in a live lobster holding facility. It employs a small full-time office staff managing operations and accounting, and up to 200 seasonal workers during the lobster harvest.

The deal comes after Thai Union's subsidiary Tri-Union Frozen Products Inc., doing business as Chicken of the Sea Frozen Foods, acquired Orion Seafood International in 2015, making it one of the largest sellers of North Atlantic lobster in the US.

Thai Union said that with the acquisition of Chez Nous, it secures an even stronger integration footprint in the North Atlantic lobster category.

The acquisition also gives Thai Union Group companies enhanced traceability and quality control, and expanded product offerings into specialty grades and packs, it added.

"Thai Union's vertical integration has been a key to our division's success in the shrimp, tuna, and pasteurised-crab categories", said Chicken of the Sea Frozen Foods President and CEO Bryan Rosenberg. "We are excited about the growth possibilities of a similar relationship in North Atlantic lobster. The partnership between Thai Union and Chez Nous will bring additional expertise and transparency to our customers."

Chez Nous CEO Frankie Benoit said the new partnership with Thai Union "is an exciting next step for Les Pecheries de Chez Nous. We have recently expanded our facilities and look forward to further growing the business with the opportunities that Thai Union's global network will provide."