HF Foods to Acquire Searay Foods in Canada

HF Foods Group is expanding outside the United States with a definitive agreement to acquire Searay Foods, a Canadian importer and distributor of ethnic and specialty frozen seafood, marking HF Foods’ first international expansion and targeting a closing in Q3 2026 subject to customary approvals. The deal values Searay at about 5.0x its 2025 adjusted EBITDA, roughly CAD 9.6 million in EBITDA, for total consideration around CAD 47.9 million (about US$35 million), funded through cash on hand and HF Foods stock. Searay, based in Richmond, British Columbia, distributes through six brands and serves North American retail, wholesale, and restaurant customers, adding a meaningful seafood category to HF Foods’ portfolio. HF Foods reiterates its goal to expand consolidated Adjusted EBITDA margin to 4.5%–5.0%+ within the next three to five years and expects the acquisition to be immediately accretive to margins and earnings per share. Upon closing, Searay’s management team is expected to continue leading day-to-day operations as a HF Foods subsidiary, supporting a seamless integration into the company’s growth strategy. This transaction underscores HF Foods’ strategy to extend its M&A playbook into new geographies and diversify its product mix beyond the United States.