SCOTTISH SEA FARMS SIGNS SHARE PURCHASE AGREEMENT
Scottish Sea Farms signs Share Purchase Agreement to acquire Grieg Seafood Hjaltland UK
Scottish Sea Farms has signed a Share Purchase Agreement to acquire 100% of the shares in Grieg Seafood Hjaltland UK from Grieg Seafood ASA for the purchase price of GBP 164 million.
The acquisition is a strategic move by Scottish Sea Farms – which is co-owned 50/50 by Lerøy Seafood Group and SalMar ASA – to deliver optimal biological performance and help meet rising demand for premium quality, Scottish-grown salmon.
With operations on Shetland and the Isle of Skye, Grieg Seafood Hjaltland UK currently operates 21 marine farms, a freshwater hatchery and a processing facility, harvesting approximately 16,000 tonnes (HOG) of Atlantic salmon in 2020.
This complements the geography and nature of Scottish Sea Farms’ own operations which are located across mainland Scotland, Shetland and Orkney and produced approximately 24,000 tonnes (HOG) of Atlantic salmon in 2020.
Commenting on the acquisition, Scottish Sea Farms CEO Jim Gallagher said:
“As farmers, we are constantly striving to create the best growing conditions for our salmon. The purchase of Grieg Seafood Hjaltland UK is a landmark step in our long-term strategy, giving us greater influence over several key biological factors including fish health, stocking regimes and sea lice management.
“We’re very much looking forward to pairing the skill and know-how of our existing farming and fish health teams with the local expertise within Grieg Seafood Hjaltland UK, working as one to benefit fish welfare and boost survival. This, in turn, will ensure a more secure and stable supply of salmon for our discerning customers the world over, helping satisfy the insatiable demand for this highly nutritious, low carbon food.”
The purchase price, which is on a cash and debt free basis, is expected to be financed with 100% cash consideration from Scottish Sea Farms and the transaction is anticipated to close within Q4 2021, subject to approval by the relevant competition authorities and customary closing conditions.
Main Image ©ScottishSeaFarms CEO Jim Gallagher