TRIS Rating expects the acquisition of a 100% equity interest in US-based Pet Treat Holdings, Inc. (PTH) to have no immediate impact on Thai Union Group Public Company Limited (SET: TU)’s credit rating or the ratings on its senior unsecured debentures, currently at “A+” with a “Negative” outlook.
The acquisition is expected to be funded with internal cash from TU’s subsidiary, i-Tail Corporation Public Company Limited (SET: ITC). Nevertheless, the transaction will place additional pressure on TU’s financial profile, given its already elevated leverage and limited headroom at the current rating level.
On October 26, 2026, TU announced that ITC, its 79.3%-owned subsidiary, had acquired PTH through i-Tail Americas Inc., a wholly owned subsidiary of ITC. The transaction, valued at approximately THB5.3 billion, was completed on October 22, 2026.
PTH, a US pet food manufacturer and distributor, generated revenue of approximately THB2.3 billion and an EBITDA margin of approximately 15% in 2025. The acquisition is intended to strengthen ITC’s U.S. manufacturing presence and broaden its product portfolio beyond wet pet food to include premium treats, such as jerky and air-dried products.
Following the acquisition, TU’s adjusted debt-to-EBITDA ratio is projected to rise from approximately 5.4 times in the first half of 2026 to around 6 times for the full year, before gradually declining to 4.8 times by 2028. The projected deleveraging depends on the timely sale of marketable securities, including the part of TU’s ITC stake classified as short-term investments, together with treasury shares, as well as reductions in capital expenditure. Delays or lower-than-expected proceeds could prolong elevated leverage and constrain TU’s financial flexibility.
The credit rating issuer reiterated that it will continue to assess TU’s investment and deleveraging plans, as sizable debt-funded investments or slower-than-expected deleveraging could have implications for the ratings.
