Deal Brief Food & Beverage - Broderna Hanssons

IMAP Sweden advised Bröderna Hanssons on its sale to Chinese Huitai Investment Group Co., Ltd. By acquiring Bröderna Hanssons, Huitai gained access to the European seafood business market. In addition, it plans to leverage
Bröderna Hanssons’ suppliers network, introducing its products to the Chinese market.

Bröderna Hanssons produces, processes and markets fresh fish and seafood. Since 2010, it has more than doubled its turnover and currently has revenues of over €43 million. The company has always focused strongly on growth, actively targeting the major supermarket chains, where today it is a major supplier.

The buyer, Huitai, is a Chinese listed company active across various industries, including aquaculture, crude salt production, marine logistics and real estate.

Market Outlook

  • The highest consumption of processed fish is in North America, followed by Asia Pacific and
    Europe, with the US ranking first in the consumption of Bluefin tuna and Atlantic salmon.
  • Asia Pacific has giant fish processing facilities, with China being the market leader.
  • Major drivers in the fish processing market are: the continuous rise in demand for seafood,
    changing consumers dietary habits and demand for differentiated and value-add seafood products.
  • Seafood producers play a key role in industry; controlling hygiene, quality and the final product.
  • Some of the key global players identified include: Pelagia AS, Leroy, Pescanova USA, Maruha
    Nichiro Corporation, Thai Union Group Public Company Limited, NISSUI, High Liner Foods, Charoen
    Pokphand Foods PCL and Marine Harvest ASA. These companies are expected to expand their
    businesses by further enhancing their product portfolio in the global market.

Valuation Summary

  • Deal financials have not been made publicly available. However, international transactions in this
    sector are usually quite highly valued; valuations range between 8 and 13 times EBITDA, depending on
    the size, geography and company specifics.


IMAP Approach

  • IMAP Sweden advised Bröderna Hanssons on its sale strategy and by tapping into its international
    colleagues, was able to present a large number of potential international buyers.
  • IMAP supported Bröderna Hanssons throughout the whole sale process, which was atypically long, given
    the high interest from a number of international buyers, including the final buyer Huitai Investment.
  • By collaborating closely with IMAP Netherlands, who set up a China desk several years ago, IMAP was
    able to guide both the seller and buyer through the final stages of the process, adding significant value
    and creating the crucial foundations for a successful transaction.

 

Client Comment
Håkan Wing, CEO, Bröderna Hanssons:
“This is very positive for Bröderna Hanssons and the Gothenburg fish harbor. Huitai, among other things, is looking to scale up our business, as well as export to China. They want to secure raw materials for China and it is very much about finding the right supplier for the right goods. With IMAP’s involvement, our company has secured a new long-term international owner that is really positive for our future development.”

IMAP has closed 56 transactions in the Food & Beverage sector since 2015

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