AcquisitionsJul 23, 2026, 08:35 AM
HF Foods Acquires Searay Foods for $35M, Enters Canada
AI Summary
HF Foods Group Inc. announced a definitive agreement to acquire Searay Foods Inc. and its related entities for approximately US$35 million. This strategic acquisition marks HF Foods' first expansion outside the United States, entering the Canadian market. The transaction is valued at approximately 5.0x Searay's 2025P Adjusted EBITDA and is expected to be immediately accretive to HF Foods' margins and EPS, reinforcing the company's growth strategy and target of expanding consolidated Adjusted EBITDA margin to 4.5%-5.0%+.
Key Highlights
- HF Foods Group Inc. to acquire Searay Foods Inc. for approximately US$35 million.
- Transaction valued at approximately 5.0x Searay's 2025P Adjusted EBITDA.
- Searay's 2025 Adjusted EBITDA was approximately CAD$9.6 million.
- Consideration funded through cash on hand and HF Foods common stock.
- Expected to be immediately accretive to Margins and EPS.
- Marks HF Foods' first international expansion into Canada.
- Reaffirms target of 4.5%-5.0%+ consolidated Adjusted EBITDA margin.
- Transaction expected to close in Q3 2026.
Price Impact
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