Fishermen of the Meridian are contemplating surrender of their catch.
In a significant move, Uni Frost, one of the largest suppliers of fish and seafood, is seeking to expand its business by acquiring three legal entities belonging to the Meridian group: JSC "Meridian", LLC "Meridian Trading House", and LLC "Meridian-Trading". The deal, valued between 5-7 billion rubles, according to Ivan Peshkov, head of the M&A department at BGP Capital, is expected to reshape the crab stick and canned fish markets.
The combined revenue of the Meridian group in 2024 was 13.7 billion rubles, but net profit decreased by 58.3% year-on-year to 468.6 million rubles. Despite this, the acquisition is seen as a means for Uni Frost to expand its product line and capture a larger market share.
If the acquisition is successful, Uni Frost could capture up to 60% of the crab stick market and 35-40% of the canned fish market. This would make Uni Frost the dominant player in these sectors, potentially altering the competitive landscape.
The Meridian group operates on the basis of a Soviet-era enterprise, specializing in fish processing and producing canned fish and ready meals. Acquiring the production capacities of the Meridian Group could provide Uni Frost with a significant boost in its production capabilities.
Uni Frost's revenue in 2024 was 45.5 billion rubles, up 44.2% year-on-year, and its net profit increased by 88.6% to 3.4 billion rubles. This growth indicates that Uni Frost is financially stable and well-positioned to make such a large acquisition.
However, it's important to note that the fishing or aquaculture sectors are more capital-intensive, and significant assets in these sectors cannot be bought for 5-7 billion rubles. Therefore, Uni Frost's expansion might be focused more on acquiring processing capabilities rather than primary production.
The proposed acquisition of the Meridian group is just one of Uni Frost's strategies for growth. In 2023, Uni Frost acquired the Agama group, a major producer of fish, seafood, and frozen vegetables. Uni Frost is also currently the largest player in the import and distribution of fish products, but this business is associated with risks, such as supply restrictions from certain countries.
As Uni Frost moves towards becoming a vertically integrated company, it is evaluating a large pool of fish processing assets for purchase. This strategic move could further strengthen Uni Frost's position in the market and provide more stability in its supply chain.
Recent data shows a growing demand for fish and seafood, with natural sales increasing by 4% from April 2024 to March 2025. Sales of herring, fish pastes and spreads, and frozen fish semi-finished products saw particularly significant increases of 5%, 9%, and 18% respectively. This growing demand, combined with Uni Frost's strategic acquisitions, could position the company for continued growth and success in the future.
For more precise data on Uni Frost’s current market share in the crab stick and canned fish markets post-acquisition, one might need to consult industry-specific market intelligence reports on seafood and processed fish products, financial disclosures or investor communications from Uni Frost or the Meridian group, or news releases or business news covering mergers and acquisitions in the seafood sector. Such data might also be found in specialized market research reports, company press releases, or industry analyses focusing on seafood processing and packaged fish products.
After the acquisition of the Meridian group, Uni Frost may aim to diversify its product line and capture a larger market share, venturing into the sports-themed food category to cater to the growing demand for fish and seafood. By introducing sports-themed fish and seafood products, Uni Frost could tap into a market currently underserved, further solidifying its position in the market.
With its acquisition of the Meridian group and strategic moves towards becoming a vertically integrated company, Uni Frost is poised to capitalize on the growing demand for fish and seafood, while also venturing into new product categories such as sports-themed foods, which may offer opportunities for unique market differentiation.
