Premium Brands Holdings Corporation has awarded a larger share in Clearwater Seafoods to the Mi’kmaq First Nations by restructuring CAD 100 million (USD 75 million, EUR 68 million) in debt.
Premium Brands and the Mi’kmaq First Nations announced the plan to purchase Clearwater Seafoods in November 2020 in a transaction valued at roughly CAD 1 billion (USD 754 million, EUR 685 million). The purchase also involved FNC Holdings, a legal entity founded by the Membertou and Miawpukek First Nation, that was formed so that the First Nations could invest in Clearwater.
The new debt restructure will give the Mi’kmaq a greater stake in Clearwater while also repaying a similar amount of existing debt Premium Brands holds from the first purchase, Premium Brands said in a release.
“This transaction represents a further step to achieving the long-term goal of Premium Brands and the Mi’kmaq Coalition having equal economic interests in Clearwater that was contemplated at the time of closing the Clearwater acquisition transaction in January 2021,” Premium Brands President and CEO George Paleologou said in a release. “We are very pleased to be working with Membertou, Miawpukek, Sipekne’katik, We’koqma’q, Potlotek, Pictou Landing, and Paqtnkek in executing our common vision for Clearwater.”
Paleologou said the move will reduce Premium’s indebtedness under its senior revolving credit facility.
Membertou Chief and CEO Chief Terry Paul said the deal will benefit the Mi’kmaq and accelerate the benefits it sought from the initial deal with Premium Brands.
“Recapitalizing the debt structure for our Clearwater ownership enables the Mi’kmaq Coalition to accelerate economic returns to our communities,” Paul said. “Today, we’re proud to say that the benefits will reach our communities faster, providing further stability and prosperity to seven Mi’kmaq communities in Nova Scotia and Newfoundland.”
Clearwater CEO Ian Smith said the transaction shows the company is a model for economic reconciliation with Indigenous groups.
“We are pleased to see this additional investment by the Mi’kmaq Coalition. It is a testament to their confidence in the company and the long-term value that continues to be created for their communities,” he said.
The latest transaction adds to Premium Brands’ streak of deals related to the seafood industry. The company recently acquired a seafood company in Quebec and has purchased several leading brands within the North American lobster sector, acquiring Starboard Seafood, Maine Coast, Hancock Gourmet Lobster Co., Viandex, and North Delta Seafood in 2019 and 2020, as well as Ready Seafood in 2018.
The acquisition came alongside the announcement of Premium Brands Q3 2023 results, which revealed another quarter of record sales and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the company.
Looking forward to 2024, Paleologou said Premium Brands plans to continue its acquisition streak.
"Our acquisitions pipeline remains very robust, and we are in active dialogue with many small and large businesses. Correspondingly, we are well-positioned to complete more transactions in 2024,” he said.
