Thai Union Goes For A Royal Touch: Acquires King Oscar
Thai Union Goes For A Royal Touch: Acquires King Oscar
Canned tuna brand conglomerate Thai Union has just secured another successful partner following its earlier corporate wedding with MerAlliance, a smoked salmon processing company from France. The maker of John West and other canned tuna brand products has acquired King Oscar for an amount which has not been publicly disclosed. Thai Union is now said to be on an international hunt for more acquisitions, given its propensity for snapping up the most successful European companies in the business.
Thai Union has just made another successful acquisition which will propel it further on the path of growth. A Reuter's report has been quoted as saying that Thai magnates are now looking to expand all over the world in business ranging from drinks to indurance. Thai Union, in keeping with this spirit has been fishing for success and Reuters is saying this double catch is a good deal for the business. It has also analysed that Thai millionaires such as Dhanin Chearavanont are not hesitating to look at businesses on foreign shores in a bid to grow and expand.
Thai Union is currently the largest canned tuna maker in the world. But the plunge it has taken into corporate matrimonial waters with King Oscar and MerAlliance is sure to yield a good catch as well as far as tapping the consumers go. If the market takes the bait, Thai Union could benefit from double the sales ( currently targeted at $4 billion this year) within a span of just 6 years, according to Reuters.
Commenting on the King Oscar deal, Thai Union Frozen's President and CEO has been quoted as saying “We are in full investment mode. At this pace with our business expansion, I am confident we will hit our revenue target of $8bn by 2020 if not before.” He has also pointed out to the strategic value of purchasing King Oscar. From every angle, this is a good catch. King Oscar sells products to noted Western retailers such as Costco and Walmart in the US. It made sales of USD 80 million in 2013. Sardines are one of its most sold products.
With so many attractions, it is not surprising that Thai Union chose to put a ring on it. Acquisitions are not new for this Thai business. Its bond with MerAlliance is also a well thought out one. MerAlliance is the leading smoked salmon producer in Europe and it too has a lot of benefits for its partner in corporate wedded bliss. The business honeymoon will only be sweetened further by the fact that MerAlliance has production facilities in not only France, but also Poland and Scotland. Last, but certainly not the least, it made USD 220 million in product sales in 2013.
Thai Union also owns the US tuna brand Chicken of the Sea. It has proved that it's no chicken when it comes to the brave, bold world of corporate acquisitions. Thai Union is pursuing profits through its motivated strategic acquisitions which are geared to set the profits booming. Clearly, this frozen food business is going to become the king of the sea (and the market) with its latest deal.
