Phillips Foods to acquire assets of South Shore Seafoods in Canada

USA – Phillips Foods, a family-owned US seafood supplier, is poised to acquire the assets of insolvent Canadian peer South Shore Seafoods.

The deal, facilitated through an established company, Phillips Bridge Seafood, is set to bolster Phillips Foods’ presence in Canada and expand its product portfolio.

The acquisition comes after Deloitte, appointed as the monitor by the Court of King’s Bench of New Brunswick in September, oversaw the restructuring of South Shore Seafoods.

Toronto-Dominion Bank had requested a stay-of-proceedings against the company and its subsidiaries due to unpaid debt and default.

The financial advisory and accounting firm successfully orchestrated the sale of South Shore Seafoods to Phillips Foods for an undisclosed sum.

The deal encompasses subsidiaries such as Captain Cooke’s Seafood, By the Water Shellfish, Can-Am Lobster and Shellfish, Bridge Lobsters, and South Shore Seafoods International.

South Shore Seafoods, based in Bloomfield, Prince Edward Island, specialized in supplying seafood, primarily lobster, under its brand name.

Phillips Foods, established in 1914, has expanded its operations beyond the United States, with processing facilities in Asia and Mexico, along with several restaurants across the country.

Phillips Foods’ diverse portfolio includes crab meat, crab cakes, appetizers like fried calamari, soups, dips, and seafood empanadas, all manufactured and supplied under its namesake brand.

The acquisition aligns with Phillips Foods’ strategic growth plans, offering an opportunity to tap into new markets and broaden its seafood offerings.

As of now, Phillips Foods has not responded to inquiries about the specifics of its factory and distribution operations, as well as those of South Shore Seafoods.

The notice of approval for the sale was issued by Deloitte at the end of last month under an asset purchase agreement (APA), with the purchase price confidential. The official confirmation of the deal is pending, and details about the closing date remain undisclosed.

The asset purchase agreement includes “all or substantially all of the property, assets and undertakings of the debtors,” excluding inventory and accounts receivable.

The agreement also outlines the purchaser’s intention to extend employment offers to selected employees on terms similar to those existing as of the closing date.

The acquisition represents a strategic move for Phillips Foods, positioning the company for continued success and growth in the competitive seafood industry.

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