News
Cavendish advises on the sale of The Seafood Company Limited
2 September 2005FPI Limited ("FPI" or "the Company") today announced its acquisition of The Seafood Company Limited, a leading importer, processor and distributor of premium chilled and frozen shellfish products in the United Kingdom retail marketplace. The agreement to purchase the privately-held company was completed today in London.
Under the terms of the agreement, FPI will acquire The Seafood Company Limited for total considerations of pnds stlg 18.3 million GBP (approximately $39.3 million CAD) on a cash-free, debt-free basis. The transaction is based on June 25, 2005 year end audited results, with interim period adjustments to the closing date. The transaction was financed through a one-year bridge credit facility obtained by FPI.
"The Seafood Company is a valuable strategic acquisition generating some exciting growth opportunities," said Derrick Rowe, Chief Executive Officer of FPI. "They have an excellent team of industry leaders with a reputation for quality, customer service, global resource knowledge and superior category management skills. This acquisition positions us well for the growing value-added, fresh, chilled and ready-to-eat fish and shellfish sectors in the UK. It also allows for the exchange of industry knowledge and culinary innovation between The Seafood Company and Ocean Cuisine International, and creates additional diversity in both geography and currency."
"Our Primary Group's production in Newfoundland and Labrador, along with our current and expanding North American value added business, will benefit from the additional channels for our seafood into the UK retail marketplace," said Mr. Rowe, adding that FPI will maintain its existing sales and marketing team for Primary Group products in Europe.
Existing customers of both The Seafood Company and FPI in the UK will continue to enjoy access to the high quality products that they have come to know and trust. Operated by FPI's Ocean Cuisine International division, The Seafood Company and its subsidiaries will continue to supply their premium shellfish to the UK market.
About The Seafood Company Limited: The Seafood Company was formed in December 1995 and operates through two subsidiaries, Anchor Seafoods Limited and The Cromer Crab Company. The Seafood Company is one of the UK's leading procurers, processors and distributors of high quality chilled and frozen shellfish with a strong reputation for quality and customer service. Its customer base includes major UK retail chains. The group handles a wide variety of shellfish ranging from warm and coldwater shrimp to crab, lobster and molluscs.
- Anchor Seafoods of West Sussex is renowned for its global relationships with suppliers and farmers and its ability to source high quality seafood throughout the world. Anchor is a leader in product knowledge, procuring shellfish from areas of the world where species are caught or farmed under the best conditions available. The business is committed to sustainable, well-managed and environmentally-friendly fisheries.
- The Cromer Crab Company is one of the UK's leading chilled shellfish processing businesses and operates from state-of-the-art production facilities in Norfolk. Cromer also has exceptional product development capabilities and unrivalled knowledge of crab in the UK market. Over the years, Cromer has diversified its product range, notably into warmwater shrimp and molluscs, and has built on its reputation as a market leader.
More information about The Seafood Company is available online at www.theseafoodcompany.co.uk.
About FPI: FPI Limited is a Newfoundland and Labrador-based seafood company engaged in harvesting, processing, global sourcing, and marketing a wide selection of high quality seafood products.
FPI's core business is its Primary Group, which holds substantial rights to access a variety of quotas in Eastern Canada and operates its own fleet and processing plants. These plants are supplied by FPI's own vessels and from other harvesters.
Products from FPI's Primary Group will continue to be marketed Internationally from its offices in Reading, UK, Cuxhaven, Germany and Dalian, China.
Ocean Cuisine International, an operating division of FPI Limited, is headquartered in Danvers, Massachusetts and services foodservice, retail, and industrial customers throughout North America. Ocean Cuisine International is a leading source for seafood throughout North America, with solid processing and global seafood sourcing operations. It markets a wide range of finfish and shellfish products.
FPI Limited trades on the Toronto Stock Exchange under the symbol FPL.