FDBusiness.com

Clearwater Seafoods, one of North America’s largest vertically integrated seafood companies, has entered into an agreement with the Beaton Family and Change Capital Partners, the private equity fund, to acquire Macduff Shellfish Group, the UK’s leading vertically integrated shellfish company, for a total of £98.4 million. In addition, there may be additional consideration paid in the future dependent upon on the future performance of Macduff.

Ian Smith, chief executive of Clearwater Seafoods, says: “The acquisition of Macduff brings together two of the world’s leading and fastest growing vertically integrated wild shellfish harvesters. The transaction will allow Clearwater to integrate its vessel management and sustainable harvesting practices, innovative processing technologies along with its global sales, marketing and distribution footprint into Macduff; a company that already possesses a talented local management team, excellent resource assets and a strong presence in the EU, the world’s largest and most valuable seafood market. 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.”

For the year ended September 30, 2015 Macduff is expected to generate approximately £52 million of sales and £9.2 million of adjusted EBITDA representing annual growth of 13% and 30% respectively.

In June 2015, Macduff acquired an additional 4 scallop trawlers and licenses (bringing the fleet to 14 mid-shore scallop harvesting vessels) along with additional preferred procurement access in complementary shellfish species (whelk). This recent investment along with additional organic growth are projected to help Macduff grow adjusted EBITDA another 25% 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.