Japanese seafood giant Umios to buy High Liner Foods for $804 million
The deal, which requires shareholder approval, would see the historic Nova Scotia company become a wholly-owned subsidiary.
LUNENBURG · Japanese seafood company Umios Corp. has agreed to acquire Nova Scotia's High Liner Foods Inc. for $804 million. The deal offers $27 per share in cash for the Lunenburg-based frozen seafood processor. High Liner's stock closed at $15.08 on Friday but jumped to $26.76 on Monday after the announcement. Umios plans to make High Liner the core of its North American business while keeping the company's headquarters in Nova Scotia. The transaction requires approval from 75 per cent of shareholders at a meeting expected in December.
Umios has committed to preserving High Liner's existing workforce, operations, brands and customer relationships. "We … are committed to preserving the heritage of this historic Nova Scotian and Atlantic Canadian business," said Umios president Daisuke Yasuda in a statement. High Liner employs roughly 1,300 people across North America, including between 300 and 400 in Nova Scotia, according to company president and CEO Paul Jewer. He stated that all employees will keep their jobs and that Umios promised to continue operating all facilities and offices.
The company's largest shareholder, Thornridge Holdings Ltd., which holds a 41.4 per cent stake, has agreed to support the sale. Thornridge president Rob Gillis called it a "very good transaction" and emphasized the importance of the buyer's commitment to Nova Scotia. "It was very important to … Thornridge itself that any purchaser made a commitment to the employees and to maintaining a head office in Nova Scotia," Gillis said. High Liner's board of directors has unanimously recommended shareholders approve the deal.
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Jewer said Umios first approached High Liner with an unsolicited takeover proposal earlier this year. That contact sparked a competitive sale process involving several other potential bidders and multiple rounds of offers. A special committee of the board evaluated the options. "We came to the conclusion that this was the best option for the company going forward," Jewer said. "It delivers significant value for our shareholders, but also we think creates wonderful opportunity for all of our stakeholders."
Analysts viewed the agreement favourably. ATB Cormark Capital Markets analyst Kyle McPhee said it was "a great deal for High Liner shareholders." Ventum Capital Markets analyst Bahamin Abdolpanah noted High Liner provides Umios with a branded retail and foodservice presence it lacked in North America. He said there is "limited room for a higher offer" given the competitive bidding process. Royal Bank of Canada analyst Ryland Conrad said the deal is not subject to an Investment Canada Act review and he anticipates no significant regulatory hurdles.
High Liner Foods was founded in 1899 in Lunenburg and is one of North America's largest frozen seafood producers. Umios, a long-standing supplier to High Liner, operates globally with a current limited North American presence consisting of pollock processing in Alaska and a surimi plant near Seattle. The transaction will be implemented through a court-approved plan under the Nova Scotia Companies Act and is expected to close in early 2027. Upon completion, High Liner shares will be delisted from the Toronto Stock Exchange and the company will become a wholly-owned subsidiary of Umios.
With files from The Canadian Press, BNN Bloomberg and CBC News