Meat packing business Hilton Food Group has today announced it bought chilled fish processor Seachill for £80.8 million to enter the UK fish market.
The deal will be carried out by Hilton’s wholly-owned subsidiary, Hilton Food Limited, as the company seeks a share in the ‘resilient’ British chilled seafood market.
Founded in 1998 and based in Grimsby, Lincolnshire, Seachill has grown to be one of the largest chilled fish processors in the UK.
Seachill focuses on the three largest fish species in the UK and has developed products such as The Saucy Fish Co brand. The company’s largest customer, Tesco, accounts for approximately 80% of its net sales.
The Hilton board believes the acquisition presents an ‘attractive and relatively low risk entry’ into the processing and supply of fish in the UK.
Hilton currently doesn’t have a presence in the fish category and it said its existing customers have shown interest in opportunities in adjacent categories, such as fish, both in the UK and internationally.
It also claimed that consumer tastes and preferences for healthier lifestyles and menus underpin the attractive market dynamics for fish as a category.
Hilton chief executive Robert Watson said: “The processing and supplying of fish and seafood into the UK is an attractive and growing market and one where we see considerable opportunities to build Hilton’s business.
“Our initial discussions with key customers support this view and we look forward to broadening our offering to both our UK and overseas customers alongside our existing meat business.”
It is expected the deal will be completed in early November. Hilton then plans to expand overseas using the Seachill management team’s expertise in the fish category, following its recent growth expansion alongside key customers in Portugal and Australia.
It also said it aims to develop innovative new products in the fish category in collaboration with customers.
Earlier this week Hilton Food Group announced a NZD 54 million ($38.8 million) investment to boost its packing capabilities in Auckland, New Zealand.
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