Bumble Bee Foods on Wednesday announced it entered into an agreement with Massachusetts-based Live Lobster Co. for the sale of its Prospect Harbor, Maine sardine manufacturing plant.
The sale is expected to close in about 70 days, at which time Live Lobster will assume control of the plant to expand its lobster supply, sales and distribution business into the area.
The arrangement will create 40 local jobs in the first year and lobster and bait purchase and sales operations will begin this month. Live Lobster expects full lobster processing operations to begin in 2011 with a potential 120 jobs created by 2012.
Bumble Bee operated the plant from 2004 through April 2010 when it announced that significant reductions in catch limits made it economically prohibitive to continue operations. The plant was the last U.S. sardine cannery. On Friday, the company announced it had hired J.P. Morgan Securities to help explore various strategic alternatives, including a possible sale.
"This development is good news, particularly for Prospect Harbor and the Schoodic Peninsula. I know that the community has been anxiously awaiting information on the future of the plant," said Maine Gov. John Baldacci. "After lengthy discussions with Bumble Bee and with Live Lobster, we believe the new ownership has a good business plan that will lead to the immediate creation of jobs and the long-term expansion of that workforce over time. Live Lobster has assured me that the company is committed to Maine, to Prospect Harbor and to building a state-of-the-art seafood processing facility."
August 4, 2010
