Nova Scotia’s seafood processing company, High Liner Foods Inc., has announced that it has entered into an agreement to be acquired by the Japanese firm Umios Corp., with the deal valued at $804 million.
As part of the acquisition, Umios, recognized as one of the largest seafood corporations globally, will offer $27 per share in cash to High Liner’s shareholders.
On the Toronto Stock Exchange, High Liner’s shares closed at $15.08 last Friday.
According to the companies, Umios intends to position High Liner Foods as the central platform for its operations in North America, while the headquarters will remain in Nova Scotia.
Umios has also pledged to uphold High Liner Foods’ existing workforce, operations, established brands, and customer relationships.
Umios’ president, Daisuke Yasuda, stated, “We … are committed to preserving the heritage of this historic Nova Scotian and Atlantic Canadian business.”
Thornridge Holdings Ltd., which owns a 41.4 percent share in High Liner, has agreed to support the acquisition, which is contingent on shareholder and other necessary approvals. Several directors and officers from High Liner Foods who hold shares have also voiced their support for the transaction.
Rob Gillis, president of Thornridge Holdings, described the acquisition as a “very good transaction” and emphasized the significance of Umios’ commitment to maintaining High Liner’s operations in Nova Scotia.
“It was crucial for … Thornridge to ensure that any buyer committed to the employees and kept a head office in Nova Scotia,” he added.
Umios operates in Japan, North America, Europe, and Asia, and has been a long-time supplier to High Liner Foods.
High Liner Foods’ President and CEO, Paul Jewer, mentioned that Umios initiated contact earlier this year, expressing interest in acquiring the company.
High Liner established a special committee from its board to evaluate its options, which included proposals from Umios and a few other firms.
“We concluded that this was the most advantageous option for the company moving forward,” he stated. “It offers substantial value to our shareholders, while also providing excellent opportunities for all our stakeholders.”
Founded in Lunenburg, N.S., in 1899, High Liner Foods is among the largest producers of frozen seafood in North America, distributing its products to grocery stores, restaurants, and food retailers throughout Canada and the U.S.
The company employs approximately 300 to 400 individuals in Nova Scotia and around 1,300 across North America, according to Jewer. He affirmed that all employees will retain their positions following the acquisition.
Umios is “committed to … continuing to employ our people,” he stated, adding, “They’ve pledged to continue operating our facilities, plants, and offices.”
Shareholders are expected to convene in December to discuss the acquisition, which requires a 75 percent approval vote to proceed.
The board of directors at High Liner Foods has unanimously recommended that shareholders endorse the acquisition, the company reported.
In addition to Thornridge, Jewer noted that other shareholders he has consulted have indicated their support for the deal.
“This is a highly attractive deal for shareholders. We are certainly anticipating their backing for the transaction,” he commented.
The acquisition will be executed through a court-sanctioned plan in accordance with the Nova Scotia Companies Act and is anticipated to finalize in early 2027.
Upon completion of the acquisition, shares traded under the symbol HLF will be delisted from the TSX, and High Liner will become a fully-owned subsidiary of Umios, which is listed on the Tokyo Stock Exchange.