South Africa's Sea Harvest will pay USD 67 million for Viking Fishing
The owners of Cape Town, South Africa-based frozen fish supplier Sea Harvest Group will purchase Viking Fishing Group for ZAR 885 million (USD 67 million, EUR 57.4 million), with the transaction slated to close in July 2018. The deal was previously publicized in December 2017 but terms of the agreement were not released at the time.
The Brimstone Investment Corporation, a consortium of broad-based black economic empowerment (B-BBEE) investors in South Africa, will fund the deal through a combination of cash, bank loans, an issue of 19.2 million Sea Harvest ordinary shares, and vendor funding, it said in an investor statement.
Viking Fishing operates six processing facilities and a fleet of 30 vessels from Cape Town, Hout Bay, Mossel Bay, Durban, and Maputo. The company catches and processes a diverse range of species including hake, horse mackerel, small pelagics (primarily pilchards and anchovy), rock lobster, prawns, and tuna. The company markets its products in wholesale and foodservice channels in South Africa, Europe, and Asia.
As part of the deal, Brimstone will also acquire a 51 percent share in Viking Aquaculture, which is involved in farming abalone, mussels, oysters, and trout across a number of locations in South Africa and Namibia.
“The acquisition of the Viking Group fits the group's investment criteria and Sea Harvest is confident of the value that a combination of Sea Harvest and the Viking Group would generate through the complementary nature of the fishing businesses and the diversification into other wild-caught species and aquaculture,” Brimstone said in its 14 June announcement. “The proposed transaction will have a positive impact on the fishing industry in South Africa as it will significantly increase black ownership in the fishing industry due to the strong transformation credentials of Sea Harvest and the B-BBEE Consortium.”