Las Vegas, Nevada-headquartered HF Foods Group, a major distributor of foodservice products to Asian restaurants and other businesses across the United States, has entered into a definitive agreement to acquire Searay Foods, a Richmond, British Columbia, Canada-based importer and distributor of ethnic and specialty frozen seafood. The transaction represents HF’s first expansion outside the United States and is expected to be consummated in Q3 2026, subject to customary closing conditions and regulatory approvals.
Under the terms of the deal, HF Foods will acquire up to 100% of the outstanding equity interests of Searay for approximately CAD $47.9 million (US $35 million), representing 5.0x Searay’s 2025 Adjusted EBITDA of approximately CAD $9.6 million. The purchase will be funded through a combination of cash on hand and shares of HF Foods common stock, with final terms to be disclosed upon closing.
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%.
“The acquisition is a pivotal milestone in our 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 margin. 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, in a joint statement issued on July 23. “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 team to accelerate Searay’s growth, including our ongoing expansion into the United States market.”
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 existing net revenue.
Searay’s recently established US activities, including planned direct import operations in Los Angeles, are expected to benefit from HF Foods’ existing distribution network, sourcing scale and West Coast infrastructure.
