Commodities Group snaps up Coral Seafarms Aquaculture
Australia-based Commodities Group, through its subsidiary Seafarms Group, has acquired the prawn aquaculture business and business assets of Queensland aquaculture company Coral Seafarms Australia and some of its subsidiaries.
The acquisition is part of the group’s previously announced consolidation strategy and will provide increased annual production capacity of 25 percent, allowing Seafarm to represent more than 30 percent of Australian prawn production.
The current hatchery expansion will supply the new operations, and assists in supplying Commodities Group’s expanding export market.
Total cost of the AUD 4.2 million (USD 3.8 million, EUR 3 million) acquisition is to be funded by a combination of cash and debt and paid in quarterly installments over the next three years totalling AUD 3.8 million (USD 3.5 million, EUR 2.7 million) with a AUD 400,000 (USD 365,528/EUR 282,709) payable on completion.
The new farm is a 30-minute drive from Commodities Group’s existing operations at Cardwell, and within a logistically connected three-farm hatchery and processing plant hub allowing for consolidation of resources and economies of scale.
The company will be stocking the ponds later this year with black tiger prawn larvae produced from its expanded hatchery.
The Coral Sea Farms business includes 32 hectares of ponds, a processing facility and related plant and equipment.
The acquisition is conditional on obtaining regulatory approval for the transfer or grant of various licenses, authorizations and crown leases.