Thai Union announced it has agreed to acquire the remaining 18 percent stake it does not already own in Tri-Union Frozen Products, which trades as Chicken of the Sea Frozen Foods (COSFF), from California-based Diversified Food Products, which is led by Bryan Rossenberg, president and CEO of COSFF, for $46 million.
The deal, which gives Thai Union total control of U.S.-based Tri-Union through two of its subsidiaries – TUNA and Tri-Invest LCC– is a move aligned with the group’s strategy to gain greater control over its subsidiaries, according to Global Meat News.
“The acquisition was part of the company’s attempt to fully integrate its interests in all its subsidiaries around the world in order to obtain effective control for the better management and alignment of the group’s strategies, corporate vision, mission, and core values,” according to the company.
Following the closing of the deal, Rossenberg along with his management team including Paul McCarthy and Brenden Beck, will continue in their roles at COSFF leading the company.
Industry Numbers
In fiscal year 2014, U.S. exports of fish and seafood reached a record value of $5.3 billion – indicating a year on year increase of four percent and almost equaling the value of U.S. poultry exports for the year at $5.5 billion, according to the U.S. Department of Agriculture (USDA). This growth secured the U.S. as the sixth largest exporter in the world following China, Norway, Thailand, India and the EU.
Rising production volumes in the U.S. have driven a 43 percent increase in export values over the past five years. Fresh and frozen fish accounted for 61 percent of these export volumes, with the bulk of shipments going to China and the EU.
In 2013, Thailand was the fifth largest importer of fish and seafood in Asia, with total imports valued at US$3.2 billion according to Agriculture and Agri-Food Canada. During the same year, the U.S. was the top supplier of frozen seafood to Thailand, with shipments to the country valued at US$207.8 million.
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Lynda Kiernan