Canadian seafood company High Liner Foods has announced that it has entered into an agreement to transfer ownership of operations and assets related to its fish processing facility and trawler in Arnold’s Cove, Newfoundland and Labrador to local management.
The transaction includes an agreement with the new operators of the facility for the continued supply to High Liner of products for sale to its packaged foods customers or for processing in its Lunenburg, Nova Scotia plant.
“We are pleased to be able to take this final step in the migration of our business in a manner that was mutually beneficial to High Liner, the employees of the business, and the town of Arnold’s Cove,” said Henry Demone, president and chief executive officer, High Liner Foods.
“Now that we are exclusively focused on international procurement and the production of value-added packaged foods, we expect this transaction will drive improvements in EBITDA starting in 2005,” Demone said.
High Liner expects the transaction to close by the end of September 2004, subject to final agreements being completed.