Published on 15/09/2014
TUF buys Norwegian sardine canner Thai Union Frozen Products Plc (TUF), a SET-listed canned tuna producer, will acquire a Norwegian canned fish producer. TUF's board approved the acquisition of Bergen-based King Oscar Holding AS from Procuritas Capital Investors IV, a private equity fund, by one of its European holding companies, the company told the Stock Exchange of Thailand before the market opened on Monday. TUF and King Oscar Holding signed an agreement on Monday, King Oscar said on its website. The value of the investment was not disclosed since the amount did not reach the level required by regulators. With a presence in 16 countries, the 112-year-old King Oscar brand is ranked among the top 10 seafood brands globally, TUF said in the statement. It is also No.1 in the premium sardines category in Norway, the US and Australia. Total sales in the latest fiscal year were US$80 million. King Oscar has two plants in Norway and Poland with access to cod liver and unique sardines from North Sea and Baltic seas. TUF, the world's largest producer of shelf-stable tuna products, also said the purchase would diversify its product lines while King Oscar's strong business in the US can help strengthen TUF's operations there. It projected the acquisition would increase its revenue by 2% a year. "We believe there is potential to grow King Oscar's business for the future," said TUF president and CEO Thiraphong Chansiri. "It is a highly strategic acquisition for our group. It will give us a unique position and an opportunity to build the brand in the market worldwide and into our global brand portfolio." The management of King Oscar Holding is also positive about the deal. "With Thai Union as industrial owner, we will finally have someone fully committed to seafood. This will enable us to grow further in our Northeast
European markets. In addition, it will open the Asian market further for us," says CEO Geir-Arne Ă…snes. TUF shares closed the morning trade session at 70.25 baht, down 0.25 baht, in trade worth 78.83 million baht.