Russian Sea Group abandons its prepared seafood brands and processing business in favour of developing wild fisheries leg
Moscow, December 17, 2012 Russian Sea Group announced sale to a group of investors of its prepared seafood brands and processing business (Russian Sea CJSC with a factory in Noginsk near Moscow) under a series of agreements, reports www.megafishnet.com.
It is rumoured that the beneficiary on the buyer side is the Belarus-German joint-venture Santa-Bremor which is believed thus to increase its share of branded products at the consumer end.
According to RM, this deal provides optimization of the Group structure and ensures its financial stability for further development of other core areas of Group business and perspective projects.
According to the agreements reached with a group of strategic investors, assets and liabilities of Russian Sea CJSC will be acquired for $ 52 million. The deal is expected to be finalized in early 2013. The corresponding decision was approved by the Group Board of Directors.
The main asset of Russian Sea CJSC is production facility in Noginsk, producing preserved fish and seafood from chilled Norwegian salmon and trout, and salmon roe. For a long time the Company is the least profitable business of the Group, not being strategically required to implement long-term development plans.
Funds received from the deal will be used to reduce the Group debt, and, as a result, leads to significant improvement in its financial performance and financial stability. The deal also allows to concentrate Group efforts on development priorities: commercial fish breeding (aquaculture), distribution of the fish products, and exploring new opportunities of its activity.
In fact, the investors behind the Russian Sea have decided in favour of developing its sea fisheries leg of business. Along these lines they are seeking to buy four pollock harvesters in the Russian Far East and a major cod harvesting combine Arkhangelsk Trawl Fleet PLC.