Loch Fyne Oysters MD Bruce Davidson has insisted the sale of the UK firm to The Scottish Salmon Co.’s investment vehicle will help the company grow and enter new markets.
The oyster group had been owned by staff since 2003 but has been acquired by Scottish Seafood Investments, a venture between The Scottish Salmon Company and its majority shareholder, private-equity firm Northern Link.
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Davidson said new ownership would mean more money for Loch Fyne to expand. “With SSI’s investment and continued financial support we are able to invest in growing capacity and in increasing our penetration of new markets, allowing us to capitalise on our iconic brand,” he told just-food.
Loch Fyne, which supplies to hotels, restaurants, delis and food shops, generates annual profits of around GBP400,000 sales of around GBP20m. Some 15% of its turnover is made in markets including Italy, Switzerland, Hong Kong and Dubai.
Davidson said SSI’s ownership would it help boost overseas sales. “The deal provides the resources and partnership expertise for the company to ultimately achieve 50% of sales from outside the UK within five years, as well as introducing innovative methods of sustainable aquaculture across our operations.”
The Scottish Salmon Co. and Northern Link set up SSI last July to expand into “value-added” seafood. SSI then made two acquisitions through Associated Seafoods, a holding company formed to buy companies. It acquired smoked salmon producer Lossie Seafoods and prawn firm Moray Seafoods.
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By GlobalDataCampbell Shirlaw, a director at The Scottish Salmon Co. and now chairman of Loch Fyne, said: “Loch Fyne is an iconic Scottish brand and we are pleased and proud to invest in it. SSI’s investment will allow the Loch Fyne Oysters’ team to grow the business and realise its true potential.”
Loch Fyne will remain based in Argyll and the 105 jobs at the company will be unaffected, the firms said.
