April 11, 2008

UK consortium to acquire No Catch assets

Scottish Sea Farms and Hjaltland Seafarms have announced its acquisition of salmon farming facilities from No Catch.

The GBP 3.6 million (US$7.1 million) acquired assets include barges, boats and cages, as well as a farm with organic salmon certified by the Organic Food Federation, plus several farm licenses.

Both Scottish and Hjaltland already have extensive operations in Shetland, and the acquisitions could very well increase their production capacity.

The acquisition will strengthen Hjaltland's market position as the leading producer of high quality sustainable and organic salmon from Shetland, according to Michael Stark, managing director of Hjaltland Seafarms.

Hjaltland's processing company, Lerwick Fish Traders, will also benefit from the acquisition through increased processing, said Stark.

Shetland-based No Catch had gone into administration since February, with debts at almost GBP 41 million (US$81 million). Administrators said they are currently seeking a buyer for No Catch's current stock of cod, which will amount to 3,400 tonnes at maturity. The administrators are also pursuing the sale of the mussel sites, trout business, and Grading Systems business while discussing the potential sale of the hatchery business.

Scottish Sea Farms and Hjaltland are both owned by Norwegian companies; Scottish is co-owned by Leroy Seafood Group and SalMar whereas Hjaltland is fully owned by Grieg Seafood.