HF Foods Enters Canada
HF Foods Group Expands Internationally, Acquires Canadian Seafood Distributor Searay Foods
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Key Points
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Searay’s six proprietary brands include Searay Foods, Thai Best, Pinoy’s Best, Smart Fish, Diamond Shrimp, and Gold Label.
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Searay reports normalized EBITDA margins of 14–15% and achieved about 15% revenue CAGR from 2019 to 2024.
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HF Foods’ seafood category already represents roughly 36% of the company’s existing net revenue.
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Upon closing, Searay’s day-to-day operations are expected to be led by incoming CEO Derick Ngan as a HF Foods subsidiary.
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The acquisition marks HF Foods’ strategic entry into Canada via the Vancouver metro market, described as a premier North American specialty Asian foods market with deep multicultural ties.
HF Foods Group is making its first move outside the United States, striking a deal to buy Searay Foods, a Canadian importer and distributor of ethnic and specialty frozen seafood, for about CAD 47.9 million — roughly US$35 million, according to Yahoo Finance. The price works out to about 5.0x Searay's projected 2025 adjusted EBITDA of CAD 9.6 million.
The deal is expected to close in Q3 2026, pending standard regulatory approvals. HF Foods plans to fund the purchase using cash on hand and company stock, Benzinga reported.
Searay Brings Six Brands and Fast Revenue Growth
Searay is based in Richmond, British Columbia, right in the Vancouver metro area. HF Foods describes Vancouver as a "premier North American specialty Asian foods market" with deep multicultural roots. Searay sells under six proprietary brands: Searay Foods, Thai Best, Pinoy's Best, Smart Fish, Diamond Shrimp, and Gold Label, according to Yahoo Finance.
The company has grown fast. Searay posted roughly 15% annual revenue growth from 2019 to 2024, Quiver Quantitative reported. Its adjusted EBITDA margins run between 14% and 15% — well above typical food distribution benchmarks. Searay serves retail, wholesale, and restaurant customers across North America.
Deal Structure Includes Cash, Stock, and Morgan Foods
The total consideration of CAD 47.9 million covers 100% of both Searay Foods and its related entity Morgan Foods. The base purchase price includes CAD 38.37 million in upfront payment, with the rest structured separately, TradingView reported. HF Foods will use a mix of cash on hand and newly issued HFFG stock to fund the transaction.
HF Foods expects the deal to be immediately accretive — meaning it should boost margins and earnings per share right away. The company is targeting a consolidated adjusted EBITDA margin of 4.5% to 5.0% or higher over the next three to five years, according to Quiver Quantitative.
Seafood Already Core to HF Foods, Searay Deepens It
Seafood is not new territory for HF Foods. The category already makes up about 36% of the company's existing net revenue, Yahoo Finance reported. Adding Searay's frozen seafood portfolio gives HF Foods more scale and more brands in one of its biggest product areas.
Upon closing, Searay will run as a HF Foods subsidiary. Incoming CEO Derick Ngan is expected to lead day-to-day operations, keeping the existing management team in place. TipRanks noted that this approach mirrors HF Foods' broader M&A playbook of acquiring well-run businesses and letting local leaders keep running them.
Canada Entry Signals Push Beyond U.S. Borders
This deal marks the first time HF Foods has expanded outside the United States. The company has built its business distributing Asian foodservice products to restaurants and retailers across the U.S. Going into Canada — specifically Vancouver — gives it a new geography with similar customer demographics, according to Yahoo Finance.
HF Foods sees the Searay deal as a template for future international moves. The company said the acquisition fits its strategy to diversify its product mix and extend its M&A approach into new markets, TipRanks reported. If the integration goes smoothly, more cross-border deals could follow.
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