February 19, 2008

US firm invests in Scottish salmon farm operator

US private equity firm, Capricorn Investment Group has acquired a minority stake in Loch Duart, a Scottish salmon farm operator based in Sutherland.

Loch Duart, which exports 60 percent of its production, became an independent company in 1999, and had a turnover of US$25.7 million last year.

Managing director of Loch Duart, Nick Joy said the deal with Capricorn would help the firm's sales in the US, where it sells 1,000 tonnes a year, or 20 percent of its output.

"The position of the dollar makes it a vulnerable market. On the other hand it is a high-end niche market," said Joy.

Loch Duart focuses on sustainability and fish welfare, therefore it requires a long-term investor.

Joy, said Capricorn shared the firm's objectives on sustainability, which points to a long-term interest.

Loch Duart looks to capitalise on new opportunities in sustainable aquaculture, as it is a growing industry with immense potential.

The salmon farming industry is an important sector to Scotland's economy, contributing more than US$384.6 million per year.

Scotland is the world's third largest salmon producer with a 10 percent global market share, and it exports more than 12 million salmon to 60 countries.