Culver City seafood supplier Rubicon Resources has been acquired by High Liner Foods Inc. in a deal valued at $107 million, Rubicon announced Wednesday.

The acquisition by the publicly-traded Canadian company is expected to be settled in 70 percent cash and 30 percent common shares. The deal’s value doesn’t include transaction fees.

Founded in 1999 by Brian Wynn, Rubicon reported annual sales of $234 million for 2016. The company supplies shrimp and fish, primarily from Southeast Asia, to major U.S. retailers including Kroger, Wal-Mart, and Sam’s Club, and it also works with restaurants and food service companies.

“The key to our success has been vertical integration, starting with our long-term strategic partnerships with shrimp farmers,” Wynn, who is Rubicon’s chief executive, said in a statement. “Aligning with High Liner Foods helps us better serve our clients, our employees, and most importantly the consumers who rely on quality seafood that has been sourced responsibly,”

A report released by the National Oceanic and Atmospheric Administration in October said that Americans increased their seafood consumption to 15.5 pounds of fish and shellfish per person in 2015, up 1 pound from 2014, a jump not seen in 20 years.

High Liner Foods, which is traded on the Toronto Stock Exchange and has a market cap of about $400 million, said the acquisition of Rubicon Resources further strengthened its presence in the U.S. market.

“Rubicon is an ideal acquisition for High Liner that will provide sales and earnings growth, and expedite diversification of our product portfolio to aquaculture species, like shrimp, that are experiencing stronger growth rates in North America,” Keith Decker, chief executive, said in a statement.

Terms of the deal include a three-year employment contract with Wynn to continue as Rubicon's president and a five-year agreement with Rubicon’s supply partners based on mutually acceptable terms.

RBC Capital Markets acted as financial advisor to High Liner Foods while Santa Monica’s American Discovery Capital was financial advisor to Rubicon. The deal is expected to close this quarter.

Manufacturing and trade reporter Shwanika Narayan can be reached at Follow her on Twitter @shwanika.

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