HF Foods Group to Acquire Searay Foods, a Highly Attractive Canadian Importer and Distributor of Ethnic and Specialty Seafood Products, Marking the Company's First International Expansion
Rhea-AI Summary
HF Foods Group (NASDAQ: HFFG) has signed a definitive agreement to acquire up to 100% of Searay Foods, a Canadian importer and distributor of ethnic and specialty frozen seafood, for approximately CAD$47.9 million (about US$35 million). The price implies roughly 5.0x Searay’s projected 2025 Adjusted EBITDA of about CAD$9.6 million.
The deal marks HF Foods’ first international expansion, entering the Vancouver metro market and leveraging Searay’s 25-year presence and 14–15% Normalized EBITDA margins. Consideration will be paid in a mix of cash on hand and newly issued common stock. The acquisition is expected to be accretive to Adjusted EBITDA, margins and EPS, supporting HF Foods’ target consolidated Adjusted EBITDA margin of 4.5%–5.0%+ over the next three to five years. Closing is targeted for Q3 2026, subject to customary conditions and regulatory approvals, with Searay to operate as a subsidiary under its existing management team.
Positive
- CAD$47.9 million purchase price at ~5.0x 2025P Adjusted EBITDA
- Adds Searay’s 14–15% Normalized EBITDA margin profile to the group
- Searay revenue CAGR of ~15% from FY2019 to FY2024
- Expected to be accretive to HF Foods’ Adjusted EBITDA, margins and EPS
- Supports HF Foods’ 3–5 year Adjusted EBITDA margin target of 4.5%–5.0%+
- First international expansion, entering the Canadian market via Vancouver metro
Negative
- Closing targeted for Q3 2026 and remains subject to customary conditions and regulatory approvals
News Explained
The signed agreement is not yet closed: its cash-versus-stock split remains undisclosed, so any newly issued HF Foods shares would increase the share count and reduce existing holders’ percentage ownership; closing remains subject to stated conditions and regulatory approvals.
Market reaction after Canadian acquisition agreement: HFFG -5.59% in the Jul 23 session
In the Jul 23 session, HFFG declined 5.59%, reflecting a notable negative market reaction. Argus tracked a trough of -8.9% from its starting point during tracking. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Acquisition Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Sep 29 | Distribution facility | Positive | -0.2% | Chicago facility purchase supported by ATM program and intended to reduce facility costs. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
The tag-specific acquisition history shows one positive acquisition event followed by a -0.18% 24-hour reaction, indicating divergence.
Key Terms
adjusted ebitda financial
normalized ebitda margins financial
compound annual growth rate financial
accretive financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Strategic entry into Canada through the Vancouver metro market, one of North America's premier specialty Asian foods markets with deep multicultural ties
Reinforces HF Foods' positioning as the acquiror of choice, extending its proven M&A playbook into new geographies
Transaction valued at approximately 5.0x Searay's 2025P Adjusted EBITDA and is expected to be immediately accretive to Margins and EPS
Consideration to be funded through a combination of cash and HF Foods common stock
HF Foods' reaffirms previously communicated target of expanding consolidated Adjusted EBITDA margin to
LAS VEGAS, July 23, 2026 (GLOBE NEWSWIRE) -- HF Foods Group Inc. (NASDAQ: HFFG) (“HF Foods” or the “Company”), a leading distributor of international foodservice solutions to Asian restaurants and other businesses across the United States, today announced that it has entered into a definitive agreement to acquire Searay Foods Inc. and its related entities (“Searay”), a leading Canadian importer and distributor of ethnic and specialty frozen seafood, headquartered in Richmond, British Columbia. The transaction represents HF Foods’ first expansion outside the United States and is expected to close in Q3 2026, subject to customary closing conditions and regulatory approvals.
Under the terms of the agreement, HF Foods will acquire up to
Management Commentary
“The acquisition of Searay is a pivotal milestone in HF Foods’ growth journey and the first step in our long-stated strategy to expand our platform beyond the United States,” said Felix Lin, President and Chief Executive Officer of HF Foods. “Searay has built an exceptional reputation over 25 years as a leading Canadian distributor of ethnic frozen seafood, with deep supplier relationships, a trusted multi-brand portfolio, and industry-leading margins. This transaction is consistent with the disciplined, accretive M&A strategy we have communicated to investors, and we are excited to combine Searay’s expertise in frozen seafood with HF Foods’ national distribution infrastructure to unlock meaningful cross-selling and supply chain synergies across both businesses.”
“We are proud of what we have built at Searay over the past 25 years, and we believe HF Foods is the right partner to carry that legacy forward,” said Jack and Philip Chan, Co-Presidents and founders of Searay. “HF Foods’ scale, distribution network, and shared commitment to quality and customer service make this a natural combination. We look forward to working alongside the HF Foods team to accelerate Searay’s growth, including our ongoing expansion into the U.S. market.”
Strategic Rationale
- First International Expansion: The transaction marks HF Foods’ entry into Canada and establishes a platform to pursue further growth across North America, consistent with the Company’s previously disclosed proven M&A playbook of geographic expansion, increased distribution capabilities, and new product categories.
- Complementary Product Portfolio: Searay’s ethnic frozen seafood offering, including its Searay Foods, Thai Best, Pinoy’s Best, Smart Fish, Diamond Shrimp, and Gold Label brands, broadens HF Foods’ specialty product assortment and deepens its presence in the seafood category, which represents approximately
36% of HF Foods’ existing net revenue. - Cross-Border Synergies: Searay’s recently established U.S. operations, including its planned Los Angeles direct import operations, are expected to benefit from HF Foods’ existing distribution network, sourcing scale, and West Coast infrastructure.
- Attractive Financial Profile: Searay has demonstrated a revenue compound annual growth rate of approximately
15% from FY2019 to FY2024 and strong Normalized EBITDA margins of approximately 14-15% , supported by disciplined inventory management and long-tenured supplier and customer relationships. - Accretive Transaction: The acquisition is expected to be accretive to HF Foods’ Adjusted EBITDA and margins, consistent with the Company’s previously communicated target of expanding consolidated Adjusted EBITDA margin to
4.5% -5.0% + over the next three to five years.
Transaction Details
HF Foods will acquire up to
The transaction is expected to close in Q3 2026, subject to customary closing conditions, including regulatory approvals.
About HF Foods Group Inc.
HF Foods Group Inc. is a leading marketer and distributor of fresh produce, frozen and dry food, and non-food products to primarily Asian restaurants and other foodservice customers throughout the United States. HF Foods aims to supply the increasing demand for Asian American restaurant cuisine, leveraging its nationwide network of distribution centers and its strong relations with growers and suppliers of fresh, high-quality specialty restaurant food products and supplies in the US and Asia. Headquartered in Las Vegas, Nevada, HF Foods trades on Nasdaq under the symbol “HFFG”. For more information, please visit www.hffoodsgroup.com.
About Searay Foods Inc.
Founded in 2000 and headquartered in Richmond, British Columbia, Searay Foods Inc. is a leading Canadian importer and distributor of branded ethnic and specialty frozen seafood, serving retail, wholesale, and restaurant customers across North America. Searay sources premium frozen seafood from more than 80 suppliers worldwide and distributes its products through six proprietary brands, including Searay Foods, Thai Best, Pinoy’s Best, Smart Fish, Diamond Shrimp, and Gold Label.
Forward-Looking Statements
All statements in this news release other than statements of historical facts are, or may be deemed to be, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and contain our current expectations about our future results, including statements regarding the expected timing, benefits, and effects of the proposed acquisition of Searay. We have attempted to identify any forward-looking statements by using words such as “expects,” “believes,” “anticipates,” “plans,” “will,” “target” and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause the Company’s actual results, events, or financial positions to differ materially from those included within or implied by such forward-looking statements, including risks relating to the Company’s ability to satisfy closing conditions and consummate the proposed acquisition on the anticipated terms or timing, or at all, risks relating to the Company’s ability to successfully integrate Searay’s operations and realize anticipated synergies, risks relating to the impact of foreign currency fluctuations, and other factors disclosed under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 and other filings with the Securities and Exchange Commission (the “SEC”). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, we undertake no obligation to disclose any revision to these forward-looking statements.
Contact:
ICR
Anna Kate Heller
hffoodsgroup@icrinc.com
