Canada-listed High Liner Foods has agreed to sell its scallop business to US group Blue Harvest Fisheries.

Under the terms of the deal, Blue Harvest will acquire the assets of High Liner’s scallop business, along with its facility in New Bedford , Massachusetts.

High Liner will receive cash proceeds of US$8m for the business and facility, plus additional amounts for scallop inventories. High Liner said it will continue to offer scallops to its customers through a supply agreement with Blue Harvest. The transaction is expected to close within the next several weeks.

The scallop processing facility was operating at the time the deal was struck. However, value-added fish operations had stopped at the facility last month after High Liner moved production of those lines to other manufacturing facilities.

High Liner had announced in February it would stop value-added fish operations at the New Bedford facility to reduce excess capacity across its production network in North America.

Blue Harvest was formed last year with the acquisition of eight Virginia-based scallop vessels and related shore assets from US scallop fishing firm Peabody Corporation. Its acquisition of the High Liner asset is the third Bue Harvest has made in 2016.