HALIFAX—Clearwater Seafoods Inc. is shoring up its position in the European and global market with a major deal.
The Nova Scotia-based seafood company has agreed to buy Macduff Shellfish Group Ltd. for approximately 98.4 million pounds, or $195 million.
Clearwater, which was launched out of the back of a pickup truck in 1976, has since grown into one of the largest seafood providers in North America, operating state-of-the-art factory vessels and employing advanced onshore processing, storage and distribution capabilities. The acquisition will boost both its supply of seafood and its revenue stream, adding approximately 15 million pounds of scallops, langoustine, whelk and crab to its supply, representing nearly 20 per cent of its current catch.
“The acquisition of Macduff brings together two of the world’s leading and fastest growing vertically integrated wild shellfish harvesters,” Ian Smith, CEO of Clearwater, said. “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.”
As a rationale for the acquisition, Clearwater said U.K.-based Macduff will signnificantly increase the company’s scale and enhance its access to key distribution channels in the U.K., Italy, Spain and Portugal.
Clearwater will use a combination of upfront cash as well as deferred consideration to finance the transaction.
The deal is expected to close by the end of the October.