Canadian seafood group Clearwater Seafoods is extending its presence in the European premium shellfish market with the acquisition of UK-based Macduff Shellfish Group for GBP98.4m (US$151m).
Macduff is a UK shellfish group owned by the Beaton Family and Change Capital Partners. The transaction value includes approximately GBP4m in seasonal working capital debt, Clearwater revealed.
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Clearwater said Macduff offers access to additional seafood supply in “key markets and channels” along with a “well-established brand”. Upon completion, the acquisition will expand Clearwater's access to distribution channels, including food service and grocery retail, in markets such as the UK, Italy, Spain and Portugal.
Macduff's projected sales for the year to end-September totalled GBP52m. The group's adjusted EBITDA stood at GBP9.2m and this is expected to grow by 25% to GBP11.5m in fiscal 2016 thanks to recent investments the group has made in a complementary shellfish spices business.
Clearwater added that it expects to accelerate profit growth by capitalising on “attractive near term opportunities” in harvesting, processing, marketing, sales and distribution.
Ian Smith, CEO of Clearwater Seafoods said: "The acquisition of Macduff brings together two of the world's leading and fastest growing vertically integrated wild shellfish harvesters. The transaction will allow Clearwater to integrate its vessel management and sustainable harvesting practices, innovative processing technologies along with its global sales, marketing and distribution footprint into Macduff; a company that already possesses a talented local management team, excellent resource assets and a strong presence in the EU, the world's largest and most valuable seafood market. Our companies have been building a working relationship for more than three years and we are confident Macduff represents a highly attractive investment with a strong strategic fit for Clearwater."
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By GlobalDataMacduff president Euan Beaton also stressed that the deal was a positive outcome for Macduff's UK workers and fisherman suppliers. "This deal is great news for our operations in the UK, bringing investment and access to new markets within an extremely successful and respected business. It provides learning and development opportunities for our staff as we share best practice with Clearwater and it gives fishermen access to more markets," he said.
Clearwater said the acquisition is expected to be accretive in 2016 to adjusted earnings by C$0.17 per share. The deal is expected to close before the end of October,
