CANADA - Clearwater Seafoods has completed its purchase of Macduff Shellfish Group Limited.
Ian Smith, CEO of Clearwater Seafoods said: "The acquisition of Macduff brings together two of the world's leading and fastest growing vertically integrated wild shellfish harvesters. They have a talented local management team, excellent resource assets and a strong presence in the EU, the world's largest and most valuable seafood market.
"Clearwater will add vessel management and sustainable harvesting practices, innovative processing technologies, a broader global sales, marketing and distribution footprint as well as a clear mandate to invest for future growth. Our companies have been building a working relationship for more than three years and we are confident Macduff represents a highly attractive investment with a strong strategic fit for Clearwater."
In June 2015 Macduff acquired an additional 4 scallop trawlers and licenses (bringing their fleet to 14 mid-shore scallop harvesting vessels) along with additional preferred procurement access in complementary shellfish species (i.e. whelk).
This recent investment along with additional organic growth are projected to help Macduff grow adjusted EBITDA another 25 per cent to £11.5 million in fiscal 2016.
In addition, Clearwater has identified further opportunities to invest that will enhance volume, revenue, margins and adjusted EBITDA in 2016 and subsequent years.
Taking into account the purchase price of £94.4 million (which excludes seasonal working capital debt) and the pro-forma 2016 adjusted EBITDA of £11.5 million, management estimates the effective acquisition multiple on the transaction is approximately 8.2 times adjusted EBITDA.
The transaction is expected to be accretive to adjusted EBITDA in 2016 by up to CAD $0.38 per share and adjusted earnings by up to CAD $0.17 per share.
TheFishSite News Desk