World’s Largest Canned Tuna Producer Buys John West

Thai Union Frozen Products PCL will buy the company for 680 million euros from former owner Trilantic Capital. Trilantic bought MW from U.S. food company Heinz for 425 million euros including debt in 2006. Since then MW has repaid most of its 240 million euro debt and tripled Trilantic’s original equity investment of 200 million euros. Trilantic was able to increase MW’s profits by 50 percent during its ownership of the company.

The 680 million euro price tag that Thai Union is purchasing MW for represents a multiple of 8.2 times MW’s 2010 earnings before interest, tax, depreciation and amortization. The high price reflects the growing interest in the European food industry.

Thai Union has said the acquisition will provide an entry into Europe’s canned fish market – the world’s largest canned fish market in terms of sales – and would reduce its reliance on the U.S. MW will take the company’s European revenues from 11 percent of total revenue to more than a third.

Following news of the bank loan financed deal, Thai Union’s share price dropped by more than 3 percent, due to Thai investors who were nervous about the company’s rising debt.

Edited by Ellie Duncan

Link: http://www.mwbrands.com/