Salmon producer Scottish Sea Farms’ acquisition of Grieg Seafood Hjaltland UK has moved a step closer to completion after receiving clearance from the United Kingdom’s Competition and Markets Authority (CMA).
In June 2021, Scottish Sea Farms signed an agreement to acquire 100 percent of the shares in Grieg Seafood Hjaltland UK from Grieg Seafood ASA for the price of GBP 164 million (USD 217.2 million, EUR 192.5 million). Included in the deal are the company’s freshwater hatchery, processing facility, and 21 marine farms around the Shetland Islands and Isle of Skye, which produced approximately 16,000 metric tons (MT) (HOG) of Atlantic salmon combined in 2020.
Scottish Sea Farms said the acquisition complements the geography of its own operations across mainland Scotland, Shetland, and Orkney, and puts it on track to produce 46,000 MT of salmon in 2022.
“This is hugely positive news that promises farmers from both companies greater opportunity than ever before to create the best growing conditions, working collectively as one team with regards to the key factors of fish health, stocking regimes and sea lice management," Scottish Sea Farms Managing Director Jim Gallagher said. “This, in turn, will enable us to offer customers a more secure and stable supply of premium quality Scottish farmed salmon.”
It is anticipated that the acquisition, which will be financed with 100 percent cash consideration from Scottish Sea Farms, will be completed before the year-end.
Gallagher recently announced his decision to step down from the board of the Sustainable Aquaculture Innovation Centre (SAIC) to focus on opportunities at Scottish Sea Farms.
Separate from the acquisition of Grieg Seafood Hjaltland UK, the company is also planning some GBP 40 million (USD 53 million, EUR 47 million) worth of key strategic investments in 2022.
Scottish Sea Farms is co-owned by the Lerøy Seafood Group and SalMar ASA.
Photo courtesy of Scottish Sea Farms
