On the heels of its acquisition of a majority interest in frozen seafood processor and supplier Odyssey in Seattle, Washington, U.S.A., Sealaksa Corporation said it was in the process of is looking to purchase other seafood firms.
Odyssey is the second seafood company that Juneau, Alaska-based Sealaska, a Native institution owned by more than 22,000 shareholders, has purchased in the past year. It acquired Independent Packers Corporation in Seattle last May.
SeafoodSource talked with Sealaska Chief Operating Officer Terry Downes about the Odyssey investment and potential future acquisitions.
SeafoodSource: What percentage of Odyssey did Sealaska purchase? What was the sale amount?
Downes: We purchased a 51 percent stake. We are not disclosing the acquisition amount currently, because it’s not that straightforward. However, we will release that eventually in our financial reports.
SeafoodSource: Why did Sealaska want to invest in Odyssey?
Downes: At Odyssey, it is the quality of the people. They have a well-trained sales and marketing team, and they are ambitious and driven. They have a good penetration. It is expensive and difficult to build a brand. They have good processing capabilities as well. We have a channel to market, and we can add more products now.
SeafoodSource: Will Sealaska help Odyssey add new types of products or new regions or markets?
Downes: We are interested in bringing products from Alaska, and they are very keen to work with the communities in Alaska. With our combined processing footprint, we can take Alaska product and market [new Odyssey products] it as a 100-percent U.S.-processed product. It doesn’t make sense to process [seafood] in China and have it shipped back to the U.S. We are increasingly looking at doing it differently. And there is a growing market for 100 percent U.S. product, especially from Alaska. At Sealaska, 100 percent of our profits go back to the owners. This keeps fishermen and communities stable, and creates pride: they like to see their products on the store shelves.
Initially, we are focusing on the U.S. market. Over time, I can see us expanding internationally. But it will be a couple of years. We have plenty of work to do here first.
SeafoodSource: Does Sealaska plan to make other seafood company acquisitions this year?
Downes: Yes. This is our second seafood acquisition in a year. We used to be in all kinds of businesses, including plastics. We set about revising the business, so it now all revolves around food, environmental monitoring and related services. We want to maximize the value of the resources we take from the oceans. It is a very indigenous mindset, and we are tying this philosophy to the history and the culture of the people who own Sealaska.
We are working on several additional deals now, and there is a good chance we will close another deal this year.
