BANGKOK -- Thai Union Group, the world's biggest seller of canned tuna, has doubled to 90% its stake in an operator of Russian seafood units in a bid to make further inroads in the European market.
The deal converts TUMD Luxembourg into a regular subsidiary. Thai Union first acquired 45% of the joint venture for $16 million in 2018. The value of the latest transaction has not been disclosed.
TUMD is a vehicle that operates three Russian processed seafood concerns that altogether form the DPR group. TUMD's manufacturing and distribution network opens up significant opportunities for additional growth in Europe and emerging markets, Thai Union said.
During the April-June quarter, Thai Union's consolidated sales climbed 3% from a year earlier to 33 billion baht ($1.05 billion). Net profit multiplied 12 times to 1.7 billion baht, due mainly to the absence of an allowance set aside last year in connection to a settlement for a lawsuit lodged against a U.S. subsidiary.
Thai Union generates 40% of its revenues in the U.S. and 30% in Europe.