Hilton Food Group PLC (LSE:HFG) agreed to acquire a Dutch smoked salmon producer Foppen and plans to raise £75mln to fund the deal.
The meat processor and food manufacturer said it is buying the company, whose registered name is Dutch Seafood Company, for an enterprise value of €90mln (£76.9mln), including adjustments for net debt and net working capital.
Hilton Food said the deal expanded its presence in a "growing protein category", as well as entering the US, a new geographic area for the company.
Foppen, which is focused on added value speciality smoked salmon products such as toast salmon and has facilities in the Netherlands and Greece, made revenue of €139.7mln and adjusted underlying EBITDA of €10mln in the year ended 31 March 2021.
The London-listed company said the balance of the consideration would be funded through a committed acquisition bridge facility.
Hilton chief executive Philip Heffer said: "The acquisition of Foppen is an exceptional opportunity for Hilton and another step towards our goal of becoming the global protein partner of choice. More and more consumers around the world are seeking affordable, high quality, and sustainable protein, and this acquisition will help Hilton take our offer into new markets and to new global customers for the first time.
"Foppen's premium product portfolio and strong customer relationships are a great fit for Hilton's model, while Hilton's strong ESG credentials in seafood will make sure our future growth plans are sustainable in every sense of the word. We welcome Foppen's management and employees and look forward to delivering profitable growth through the combination of Hilton and Foppen."