Centre Partners Buys Back Bumble Bee In Usd 600 Million Dealff
21 November 2008
United States Bumble Bee Foods, the San Diego-based tuna canner, was sold Wednesday with a collection of other seafood brands to a private investment firm in a deal valued at USD 600 million.
New York-based Centre Partners bought the seafood businesses of Canada-based Connors Bros. Income Fund, North America’s largest branded seafood company, which sells canned tuna, salmon and other seafoods under labels such as Bumble Bee, Clover Leaf, Brunswick, Snow’s and Beach Cliff.
Centre Partners has a long-standing relationship with Bumble Bee and its management team, having previously acquired the company from ConAgra in May 2003.
Bumble Bee merged with Connors Bros. Income Fund in April 2004 in a deal valued at that time at USD 385 million, in which Centre Partners was the seller.
Bumble Bee employs 130 in San Diego, and all of the company’s brands employ 2.000 worldwide.
Chris Lischewski, chief executive officer of Connors and CEO of Bumble Bee, said Centre will provide the financial support needed to “accelerate†growth plans.
On November 10th, the unitholders of Connors accepted the offer of Centre Partners to purchase the operating companies of Connors, which lead to the redemption of all of the units of the Fund upon the closure of the transaction on November 17th.
Under the terms of the Agreement, the Fund’s unitholders receivied USD 8.50 per unit in cash. The Fund has a little over 70 million units.
Scott Perekslis, senior partner at Centre, said there is significant growth opportunity in the seafood market and, in the tough economic climate, for canned seafood in particular.
The canned seafood business has been struggling in recent years with escalating prices for seafood, as well as increased manufacturing and fuel costs. Prices for raw tuna reached a record high this spring, according to fishing industry statistics.
“The company has a number of exciting growth initiatives, which we believe will significantly improve its market-leading positions in both the United States and Canada,†Perekslis said.
Perekslis said Bumble Bee’s senior management team will own a significant stake in the business and will continue to serve in the same executive capacities with the company.
Something similar happened when Connor Brother’s Fund and Bumble Bee merged in 2004, with Chris Lischewski being appointed as the director of the group.
In support of the acquisition, Wells Fargo Foothill – part of Wells Fargo & Co., a financing provider – underwrote a USD 350 million senior revolver and term loan.
Other companies that arranged financing and took a stake in the venture include Ares Capital Corp. and Falcon Investment Advisors.
Bumble Bee, which originated in Astoria, Ore., put down roots in San Diego after the company bought the Sun Harbor Industry cannery in the late 1970s.
San Diego is also headquarters to canned tuna rival Chicken of the Sea International, a private firm that employs 90 in San DiegoCounty and more than 2.500 worldwide.
