Chicken of the Sea International's parent company, Thai Union International, earlier this week announced the acquisition of Port Washington, N.Y.-based Empress International, Ltd. Empress, which recently celebrated its 50th anniversary, is one of the leading importers and distributors of frozen shrimp and other fish and shellfish in the nation. The combination of Chicken of the Sea and Empress will expand the branded distribution of Chicken of the Sea's shelf-stable seafood product line -- canned and pouched tuna and salmon, and canned crab, shrimp, oysters, and other seafood -- to include frozen and fresh varieties.
This arrangement will also allow the continued growth of the premium "Xcellent" brand offered by Empress International to the nationwide foodservice market. In addition to shrimp, Empress' product line features crab, mussels, Chilean sea bass, salmon, halibut, pollock, mahi-mahi, sole, tuna, cod and black cod, and is sold at both foodservice and retail channels.
The acquisition is the second investment in the United States for the firm after Thai Union took over tuna subsidiary Chicken of the Sea two and half years ago. Chicken of the Sea, which competes with StarKist, the brand owned by San Francisco-based Del Monte Foods Co, commands an 18 percent share of the U.S. canned tuna market.
The combined companies' U.S. seafood sales revenues are more than $550 million annually.
"With more than 90 years of experience in the shelf-stable seafood business, Chicken of the Sea is very excited to expand our brand throughout the seafood category," said Dennis Mussell, president and CEO of Chicken of the Sea. "The combination of these two companies by Thai Union represents a good long-term move. Empress has a solid reputation in the shrimp industry with a consistent record of growth," he said.
Joel Kolen, president of Empress agreed. "We feel Chicken of the Sea is the best possible partner because of its long history of branded quality products that consumers trust," he said. "Empress' Xcellent brand is going to be a great fit with the outstanding Chicken of the Sea brand."
Thai Union International is a subsidiary of Thai Union Frozen Products PCL. Thai Union Frozen Products, established in 1998, specializes in production and export of frozen and shelf-stable seafood.
"The synergy between these two companies expands Thai Union markets and products to increase its presence in the U.S. seafood marketplace," said Thiraphong Chansiri, president of Thai Union Frozen Products. "This is an exciting development in the growth of Chicken of the Sea and Empress, and it offers Thai Union a larger footprint in the United States in order to market the full range of products from its large shrimp processing business in Thailand."
Mussell expects the agreement to complement Chicken of the Sea's ability to meet consumer needs for quality seafood and better support its national customer base. "The diversity of products available, from canned and pouched tuna to fresh and frozen shrimp, continue to provide additional support for consumer choices offered by a trusted brand," he said.
Financial terms of the agreement were not disclosed, but some analysts said the firm would have paid somewhere under one billion baht ($23.91 million). Empress management will report to Chicken of the Sea. Additional organizational details were not disclosed.
Empress International is a leading international importer of frozen shrimp and other fish and shellfish products. The company concentrates much of its efforts on the importing of high-quality white shrimp products from Latin America. Empress markets more than half of its total product under the "Xcellent" brand, considered by many the best quality on the market. Empress markets shrimp across all sectors in the seafood industry, including wholesale, foodservice and retail outlets. The annual net sales have increased an average of 11 percent over the last 12 years. The new acquisition was expected to yield a 16 percent return on investment within six years.
Tuna accounts for about 60 percent of Thai Union's total sales, with a fifth of its earnings coming from U.S. canned tuna sales. The remainder comes from frozen shrimp and pet food.
Chicken of the Sea International is a seafood category leader providing a variety of canned and pouched seafood products, including tuna, salmon, crab, shrimp, oysters, clams, mackerel and sardines. The Chicken of the Sea brand and famous Mermaid icon are among the most recognized brands in America.