HF Foods Enters Canada with ~US$35M Cash-and-Stock Deal for Searay Foods

summarizeSummary

HF Foods Group announced its first international expansion with the ~US$35 million cash-and-stock acquisition of Searay Foods. The deal is expected to be immediately accretive and close in Q3 2026.

check_boxKey Events · M&A and Partnerships · HFFG

• Acquisition of Searay Foods

  HF Foods Group has signed a definitive agreement to acquire 100% of Searay Foods Inc. and Morgan Foods Inc., a Canadian distributor of ethnic and specialty seafood, for an aggregate base purchase price of CAD$47,921,740 (~US$35 million).

• Consideration Structure

  The purchase price comprises CAD$38,365,392 in cash and 1,701,871 shares of HF Foods common stock to be deposited in escrow, with additional contingent earnout payments tied to future EBITDA targets.

• Strategic Rationale

  This acquisition represents HF Foods' first international expansion, providing entry into the Canadian market and expected cross-border synergies. Searay's strong margins (14–15% Normalized EBITDA) are expected to be immediately accretive to HF Foods' margins and EPS.

• Closing Timeline

  The transaction is expected to close in Q3 2026, no later than August 31, 2026, subject to customary closing conditions and regulatory approvals.

auto_awesomeAnalysis · HFFG · Trade & Services

In a move that marks its first international expansion, HF Foods Group is acquiring Searay Foods, a Canadian distributor of ethnic seafood, for approximately CAD$47.9 million (~US$35 million). The consideration includes CAD$38.4 million in cash and 1.7 million HFFG shares placed in escrow, with additional earnout potential. The transaction gives HF Foods a foothold in the Vancouver market and is expected to be immediately accretive to margins and EPS. Management also reaffirmed its target of expanding the consolidated Adjusted EBITDA margin to 4.5%–5.0%+ over the next three to five years. Closing is anticipated in Q3 2026, subject to regulatory approvals.