Cermaq plans to acquire three salmon processing facilities from Norwegian peer Grieg Seafood for Nkr10.2bn ($988.6m).
The purchase of the sites – one in Finnmark, Norway, and two others in Canada in British Colombia and Newfoundland – is subject to approval by the “relevant” competition regulators, Cermaq, a European subsidiary of Japan’s Mitsubishi Corp., said in a statement today (17 July).
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Separately, Grieg Seafood said the disposals also include its sales organisation in North America as the salmon processor seeks to focus operations on Rogaland in Norway.
Cermaq CEO Steven Rafferty said the plant acquisitions will “strengthen our competitiveness and contribute to growth”.
He added: “We have profound respect for Grieg Seafood and their pioneering initiatives as a global company with a long-lasting legacy.
“With dedicated employees and operations in several regions where Cermaq operates today, we believe the companies are an excellent match with a common goal for sustainable and innovative operations.”
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By GlobalDataAsked by Just Food to confirm the processes conducted at the three facilities and whether any jobs will be lost, or in fact retained, a spokesperson for Oslo-based Cermaq declined to comment, saying the company was restricted by the regulatory proceedings.
Grieg Seafood confirmed the plant sales and transaction price in its own statement from Nina Willumsen Grieg, who took on the CEO role on an interim basis in March to replace Andreas Kvame.
“This transaction will position both Grieg Seafood and the regions for the future. It allows us to concentrate focus and resources in Rogaland,” she said. “We aim to continue to be a strong actor in the advancement of sustainable aquaculture in Norway.”
This publication has also asked Grieg Seafood to confirm the nature of the three operations, the future of employees, and whether Ms Grieg has taken on the CEO role on a permanent basis.
In a Euronext filing, Grieg Seafood said the transaction with Cermaq is expected to close in the final quarter of this year subject to regulatory approval. The company will provide more information on its “strategic direction” when second-quarter results are issued on 26 August.
Meanwhile, in a separate presentation, Grieg Seafood said the transaction will have no impact on its “ownership” in Tytlandsvik Aqua and Årdal Aqua, while its new value-added processing site in Gardermoen, Norway, will remain with the business.
First-quarter results issued in May showed Grieg Seafood booked sales of Nkr2.18bn, down 4.8% from a year earlier. Harvest volumes fell to 20,770 tonnes GWT, from 21,075.
EBITDA declined 14% to Nkr381m, while profit before tax remained in the red with losses widening to Nkr603m from Nkr301m.
Issuing the fiscal 2024 results in February, Grieg Seafood said it booked a Nkr1.74bn impairment “due to changes and uncertainty in Canada”.
Kvame, still CEO at the time, explained: “While Rogaland continued to deliver strong operational and financial performance, the fourth quarter continued to bring difficult operating conditions and adverse biological events in Finnmark.
“In Canada, we maintained a cautious approach in British Columbia given the persisting political uncertainty and worked to find a good way forward for our operations in Newfoundland.”
For the full year, sales revenue at Grieg Seafood rose 5.1% to Nkr7.38bn. Harvest volumes climbed 7.9% to 77,704 tonnes GWT.
However, EBITDA slumped to Nkr659m from Nkr1.33bn. The company delivered a net loss of Nkr2.45bn versus a Nkr560m profit in fiscal 2023.
