Japanese firm gobbles up Unilever’s North American seafood unit

Japan (August 19, 2001) - A major Japanese fishing and seafood company is set to swallow up the North American seafood business of Anglo-Dutch consumer products giant Unilever plc for US$ 175 million.

The purchase by Nippon Suisan Kaisha Ltd of Gorton's frozen seafood in the U.S. and Blue Water in Canada marks what the Japanese media described as the first major attempt by a Japanese food producer to cater for U.S. retail consumers.

Gorton's has the top share in the U.S. frozen foods market while Blue Water has the second biggest share in Canada, according to Nippon Suisan, which said the deal would give it a full-scale North American seafood business.

Unilever, whose main brands include Knorr soup, Lipton tea and Dove soap, said the sale was part of its strategy to focus on core brands.

Nippon Suisan is already exporting seafood products from North America to the Japanese market, and is also active in processing and marketing activities through two North American subsidiaries - Unisea Inc and Fishking Processors Inc.

Gorton's and Blue Water chalked up combined sales of $ 250 million last year, equivalent to around 40 per cent of Nippon Suisan's sales in Japan, and earnings before interest, tax, depreciation and amortization of $ 20 million.

Source : Reuters