TORONTO—Connors Bros. Income Fund, the world's largest producer of canned sardines, is merging with U.S. fish processor Bumble Bee Seafoods LP in a $385 million deal.
Connors, based in the Canadian province of New Brunswick, would own a majority of the combined company to create "a diversified North American seafood powerhouse."
The deal values San Diego-based Bumble Bee at $385 million. Bumble Bee is owned by Centre Partners Management LLC, a New York-based private equity firm that acquired the company from ConAgra Foods Inc.
"Connors will become North America's largest branded seafood company with revenues of US$689 million," Christopher Lischewski, Bumble Bee's president and chief executive, said Wednesday. Mr. Lischewski, who is to be CEO of the new company, said Connors will lead the North American canned seafood market in nearly every segment.
Bumble Bee produces canned tuna, salmon and specialty seafood under brands including Clover Leaf and Bumble Bee.
It has processing plants in California and Puerto Rico and is the largest buyer of canned salmon from British Columbia and Alaska.
Connors, which produces the Brunswick and Beach Cliff sardine brands, has processing plants in New Brunswick and Maine, as well as its own fishing fleet.
Both parties are hoping the deal can be completed by March 19. Operating headquarters are to be maintained in both Canada and the United States.
Connors began as a small canner in Blacks Harbour, New Brunswick, in 1893, and has grown to become North America's largest producer of canned sardines. Bumble Bee Seafoods was founded in 1899 and currently employs 5,000 people worldwide.
|
To
send us your comments, questions, and suggestions click
here |