Grieg Seafood acquires Northern Aquaculture Limited in Shetland
Grieg Seafood ASA's subsidiary Grieg Seafood Hjaltland UK Ltd. has entered into an agreement to acquire Northern Aquaculture Limited in Shetland. This implies acquisition of 4 production sites on the west coast of Shetland, with total combined discharge consent of 2,900 tonnes, reports www.megafishnet.com with reference to Grieg Seafood.
The acquired production sites fit well into the current production areas of Grieg Seafood Hjaltland. In addition to securing increased volume and operational synergies, the transaction is beneficial from a bio security point of view, and Grieg Seafood Hjaltland will be the sole operator in the areas concerned.
Grieg Seafood Hjaltland currently has production on 2 of the acquired sites under a contract growing agreement. This contract growing agreement will be terminated upon completion of this transaction.
The acquisition price for Northern Aquaculture Limited amounts to GBP 1.108 million (NOK 10 millions). As part of the transaction, Grieg Seafood Hjaltland is also taking over the equipment leasing with a remaining liability of GBP 0.7
million (NOK 6.4 millions). The total enterprise value of the transaction is GBP 1.8 million or NOK 16.4 million.