HF Foods Group Inc. (NASDAQ:HFFG), a leading food distributor to Asian restaurants across the United States (“HF Foods”, “HF Group” or the “Company”), announced today that it has entered into an agreement (the “Agreement”) to acquire substantially all of the assets of Sealand Food, Inc. (“Sealand”).
With 25 years of operating history, Richmond, Virginia-based Sealand is one of the largest frozen seafood suppliers servicing the Asian/Chinese restaurant market along the Eastern Seaboard of the U.S, with 2022 run-rate revenues expected to approach $90 million. Sealand services a market that includes seventeen states along the East Coast, from Massachusetts to Florida, as well as Pennsylvania, West Virginia, Ohio, Kentucky, and Tennessee.
“I am extremely pleased with the signing of the Agreement to acquire Sealand’s operations and am looking forward to the closing of the transaction,” said HF Group Chairman Russell T. Libby. “Sealand’s leadership position in the frozen seafood industry, coupled with their extensive distribution network along the East Coast, particularly in states where HF Foods currently does not have a presence, perfectly complements the strengths of our existing network and supports our strategic goal of growth by acquisition.”
Peter Zhang, CEO of HF Foods, added: “The acquisition of Sealand takes our extensive distribution network to 46 states covering well over 90% of the contiguous United States and propels us to over a billion dollars in projected 2022 revenue. Upon completion of the acquisition of Sealand, the Company will serve approximately 15,000 restaurants. We will continue to solidify our market leadership position to deliver long-term shareholder value through organic growth and acquisitions such as this. On behalf of the Company, I sincerely welcome Tammy Lu and the rest of the Sealand employees to our HF Group family.”
Connie Wang, President of Sealand, said: “With HF Group’s nationwide distribution footprint and market leadership position, we expect our customers will benefit from an organization with greater scale and our suppliers will enjoy the ability to reach further into HF Group’s network. We are excited to have found a partner that shares our commitment to customer service and look forward to partnering with the HF Group team to drive additional value.”
