Lunenburg, Nova Scotia, Canada-headquartered High Liner Foods announced on May 30 that it has sealed the deal to purchase of Rubicon Resources, LLC.
“We are very pleased to have completed the acquisition of Rubicon. Rubicon supports our growth strategy by expediting our diversification into aquaculture species like shrimp that are experiencing higher growth rates in North America, and will also add immediate shareholder value through increased sales and earnings,” stated Keith Decker, president and ceo of High Liner.
This highly productive shrimp farmer in Thailand is an important link in Rubicon Resource’s vertically integrated supply chain that provides frozen seafood to North America and other markets.“The key to our success has been our relentless customer focus and long-term strategic partnerships with shrimp producers,” said Brian Wynn, chief executive of Rubicon. “Aligning with High Liner Foods will help us to better serve our clients, our employees, and most importantly, the consumers who rely on quality seafood that has been sourced responsibly.”
High Liner, ranked as North America’s leading processor and marketer of value-added frozen seafood products, acquired 100% of the outstanding equity of Culver City, California-based Rubicon. The privately held corporation is engaged principally in the import of farm-raised frozen shrimp from Thailand and elsewhere in Southeast Asia for distribution to customers in the USA private label retail market.
Rubicon’s annual sales in 2016 amounted to approximately $234 million, with pro forma earnings before interest, taxes, depreciation and amortization (EBITDA) of $16 million.
The purchase price for Rubicon was $107 million prior to transaction fees, and was settled 70% in cash and 30% in High Liner Foods common shares, with the share consideration subject to a three-year standstill agreement during which time the sellers are not permitted to sell the shares (except in limited circumstances). The transaction also includes a five-year supply agreement with Rubicon’s supply partners based on mutually acceptable terms and a three-year employment contract with Brian Wynn to serve as Rubicon’s president.
