HF Foods Group has entered into a definitive agreement to acquire Searay Foods Inc., a Canadian importer and distributor of ethnic and specialty frozen seafood, marking the company's first expansion outside the United States. The transaction is valued at approximately CAD$47.9 million, or about US$35 million, representing roughly 5.0 times Searay's 2025 Adjusted EBITDA of approximately CAD$9.6 million. Consideration will be funded through a combination of cash on hand and HF Foods common stock, with the deal expected to close in the third quarter of 2026. HF Foods stated the acquisition is expected to be immediately accretive to margins and earnings per share, and reaffirmed its target of expanding consolidated Adjusted EBITDA margin to 4.5 to 5.0 percent or more over the next three to five years. Searay, founded in 2000 and headquartered in Richmond, British Columbia, brings a portfolio of six proprietary brands and a revenue compound annual growth rate of approximately 15 percent from fiscal 2019 to 2024.
Hf Foods Group IncAcquisition of Searay Foods expected to be immediately accretive to margins and EPS, expanding internationally.
Acquired at ~5x EBITDA, providing liquidity and growth opportunity for Searay shareholders.