South Island-based fishing giant Sanford will buy Pacifica Seafoods mussel and oysters businesses for $85 million.Last week Sanford received clearance from the Commerce Commission to buy the business, which is part of the Skeggs Group of companies.The p
South Island-based fishing giant Sanford will buy Pacifica Seafoods mussel and oysters businesses for $85 million.
Last week Sanford received clearance from the Commerce Commission to buy the business, which is part of the Skeggs Group of companies.
The purchase agreement is conditional on pre-arranged funding arrangements become unconditional by Wednesday this week.
The deal involves 70 marine farms, 400 hectares of water space and 800 mussell longlines together with lease, share and contract farming operations that include a further 130ha of space and 300 mussel longlines.
In addition there is a 40% interest in an approved 2695 hectare mussel farm development at Pegasus Bay near Christchurch; a mussel and salmon processing facility in Christchurch; 10 marine farm service and harvesting boats; and Pacifica’s interest in a cooperative marketing company sell mussels in China, of which Sanford already has a 35% holding.
Sanford has hinted at some job losses following restructuring as the two companies are joined.
Sandford managing director Eric Barratt said the Pacifica was highly complementary with Sanford’s aquaculture business.
“It follows on from our acquisition of marine mussel farms from Sealord in 2009 and is totally consistent with our aquaculture strategy that we outline in May this year.”
