TUF acquires King Oscar

TUF acquires King Oscar

Thai Union Frozen Products Plc (TUF), the world's top exporter of canned and frozen tuna and shrimp, says it will continue to make acquisitions abroad with a targeted return on investment (ROI) of at least 15%.

TUF president and chief executive officer Thiraphong Chansiri revealed his intention after TUF yesterday announced it would acquire 100% of the assets and the trademark of Norway's King Oscar, a leading seafood brand.

The deal came several weeks after the firm signed a deal to buy French smoked-salmon maker MerAlliance. 

Mr Thirapong said new acquisitions were aimed at businesses in Europe and the US.  

He said expanding to the EU is crucial for TUF to ensure that revenue reaches the target of US$8 billion by 2020 due to the high purchasing power of the EU.

The company set the ROI for each investment at no less than 15%, and the acquisition strategy entails small and big operations.

The purchase of King Oscar will help increase revenue for TUF significantly, as the Norwegian brand is distributed in 16 countries worldwide, said Mr Thirapong.  

The deal will help TUF sell other products in Europe, which would otherwise be difficult to access.  

King Oscar is among the world's top 10 seafood brands, with a strong heritage dating back more than 140 years. 

As one of the leading canned fish suppliers in Norway, the US, Poland, Belgium and Australia, King Oscar has seen an average growth rate of 6% annually in the past five years.

Headquartered in Bergen, Norway, King Oscar has production facilities in Poland and Norway with a combined production capacity of 135 million cans a year.

Mr Thirapong said the deal, which is expected to be completed in the last quarter, was a strategic acquisition that gave TUF a unique position in the global market as well as an opportunity to help build the King Oscar brand. 

"Even after this transaction, our net debt-to-equity ratio of 0.8 is still in a comfortable range," he said. "Our calculated direction for growth within the group's six strategic business categories has become even stronger with this world-class brand acquisition."

King Oscar chief executive Geir-Arne Asnes said: "We share the same vision as TUF — a vision of technological advancement and premium quality focus. Joining with TUF marks an expansive phase for the King Oscar brand worldwide."

TUF shares closed yesterday on the SET at 70 baht, down 50 satang, in trade worth 170 million baht.

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