Singapore-based Barramundi Group announced 27 December, 2022, it has agreed to a strategic partnership with Wild Ocean Australia on its Australia business.
The two companies have signed a letter of agreement under which Barramundi Group will sell a 75 percent stake in its Australia business under the Marine Produce Australia (MPA) for AUD 1.6 million (USD 1.1 million, EUR 1 million) initially. Wild Ocean has agreed to pay a further AUD 3.4 million (USD 2.30 million, EUR 2.16 million) to Barramundi Group if at least four of the 13 seawater site leases in the Kimberley region of Western Australia are approved, which would then raise the total value of their deal to AUD 5 million (USD 3.38 million, EUR 3.18 million).
As part of the agreement, Barramundi Group will own 34 percent of Wild Ocean Australia's shares, allowing it to retain the equity majority interest in MPA and enabling it to access to various Australian seafood products for other markets.
Following the partnership with Wild Ocean, Barramundi Group will continue to develop the “Kimberley Ocean Barramundi Project,” which includes MPA’s 13 seawater sites that will be able to produce 30,000 metric tons (MT) per year of barramundi, the company said.
Wild Ocean runs a processing, value-adding, and distribution business in Darwin City, located in Australia’s Northern Territory. The company supplies wild-caught fish to retail operators across Northern Territory, including Woolworths and Coles, and to markets in other regions of Australia including Cairns, Brisbane, Sydney, Melbourne, and Perth, and its own Darwin Fish Market retail outlet supplies a variety of Australian seafood products to the Greater Darwin region. The company is also a ship chandler for various international cruise lines and the Royal Australian Navy.
“At Wild Ocean, we are excited that through the acquisition into MPA, we can fully unlock the potential of Australia’s only ocean-grown barramundi. The new seawater site leases applied, and currently undergoing approvals, will allow us to showcase the premium quality of Cone Bay Ocean Grown Barramundi to more customers here and abroad,” Wild Ocean Australia Director Frank Norton said. “With Barramundi Group’s existing international customers and channels, our access to the finest Australian produce, processing expertise, and bandwidth, topped off with Darwin’s strategic location for cost-effective distribution into Asia markets, the strategic nature of this partnership is compelling and formidable.”
The partnership with will enable Barramundi Group to retain its presence and interest in the Australian market, and allow it to take advantage of Wild Ocean's expertise, network, and funding for the growth of MPA, according to Andreas von Scholten, who was the CEO of Barramundi Group through the end of 2022. James Kwan took over as CEO of the Barramundi Group on 1 January, 2023, following von Scholten's resignation.
Barramundi will hold an extraordinary general meeting on 10 January, 2023, to seek shareholder approval of the agreement with WOA.
Photo courtesy of Barramundi Group/LinkedIn
