The Anglo-Dutch consumer products group Unilever announced on August 17 that it has signed a definitive agreement to sell its North American seafood businesses to Nippon Suisan (USA), Inc, a subsidiary of the Japanese seafood conglomerate Nippon Suisan Kaisha Limited for $175m (Euro191.907m) in cash.
The deal comprises the Gorton's business in the United States and the BlueWater Seafoods business in Canada.
The transaction, subject to customary conditions including regulatory approvals, should be completed in the second half 2001.
Gorton's is the leading retail frozen seafood brand in the US, while BlueWater Seafoods is the second largest brand in Canada.
Gorton's also supplies frozen seafood to the foodservice industry in the US.
Combined, the businesses had net sales of $250m (Euro274.152m) and EBITDA of $20m (Euro21.932m) in 2000.
This sale is part of Unilever's "Path to Growth" strategy that focuses on a number of leading brands in defined core categories of Foods and Home and Personal Care.
Patrick Cescau
, Unilever's Foods Director said: "The sale of Gorton's and BlueWater is consistent with our focus on brands that are core to Unilever such as Knorr, Lipton and Dove.
Although both businesses are robust we feel there is little scope for Unilever to grow the brands outside of North America where we already have well-established brands in this category."
Included in the sale is Gorton's head office in Gloucester, Massachusetts and three production sites in Gloucester-MA, Cleveland-Ohio and Montreal, Canada.
The businesses currently employ about 750 people.