SALMON farmer Scottish Sea Farms has entered a share purchase agreement to acquire Grieg Seafood Hjaltland UK, which has operations on Shetland and the Isle of Skye, from Grieg Seafood ASA in a deal worth £164 million.
The acquisition is a strategic move by Norwegian-owned Scottish Sea Farms to “to deliver optimal biological performance and help meet rising demand for premium quality, Scottish-grown salmon”.
Grieg Seafood Hjaltland UK currently operates 21 marine farms, a freshwater hatchery and a processing facility, harvesting about 16,000 tonnes of Atlantic salmon in 2020.
Scottish Sea Farms, which is co-owned by Lerøy Seafood Group and SalMar ASA, said the Grieg Seafood Hjaltland business complements the geography and nature of its own operations which are located across mainland Scotland, Shetland and Orkney. Last year, the business produced about 24,000 tonnes of Atlantic salmon.
Jim Gallagher, the chief executive of Scottish Sea Farms which has its head office in Stirling and regional offices in Argyll, Kirkwall and Scalloway, said: “As farmers, we are constantly striving to create the best growing conditions for our salmon.
“The purchase of Grieg Seafood Hjaltland UK is a landmark step in our long-term strategy, giving us greater influence over several key biological factors including fish health, stocking regimes and sea-lice management.
“We’re very much looking forward to pairing the skill and know-how of our existing farming and fish health teams with the local expertise within Grieg Seafood Hjaltland UK, working as one to benefit fish welfare and boost survival.
“This, in turn, will ensure a more secure and stable supply of salmon for our discerning customers the world over, helping satisfy the insatiable demand for this highly nutritious, low-carbon food.”
The purchase price, which is on a cash and debt-free basis, is expected to be financed with 100 per cent cash consideration from Scottish Sea Farms. It is anticipated that the transaction will close within Q4 2021, subject to approval by the relevant competition authorities and customary closing conditions.