October 19, 2010

Spanish merger secures seafood supply

The merger of Congelados Marinos Promar and Frigoríficos Fandiño will place the two Vigo-based companies among Spain's 10 largest seafood suppliers, with a combined first-year turnover of approximately EUR115 million (US$163 million).

The new holding company will be vertically integrated and majority owned by Frigoríficos Fandiño, which has production facilities at A Coruña, Spain, in partnership with Iris Coruna and in Senegal and Argentina with Argentine partner Pesquera Deseado.
 

A fleet of six vessels, including three Argentinean trawlers, will supply squid and hake to the plant in Gabon, in west central Africa, with one trawler in NAFO (Northwest Atlantic Fisheries Organization) fishing grounds and two in South and North Atlantic fishing grounds.

Congelados Marinos Promar contributes its three production facilities in Peru, in addition to several finfish and shellfish aquaculture projects and a joint venture with Thenaisie Provoté, forming a EUR3 million (US$4.25 million) investment.

The merger also incorporates a fishing area operating with supplier Caladero, which has a production plant in Pontevedra (Vigo).

Last year, Promar sold 25,000 tonnes of product, mainly in third markets, reporting EUR66 million (US$92 million) in turnover, while Fandiño's 21,400 tonnes achieved EUR54 million (US$75 million) in turnover.

Fandiño controls a 32.6% stake in the new holding company, while a frozen seafood logistical storage facility owned by Frigoríficos Oya's in Vigo Bay holds a 24.93% stake.

   
                                     
The merger incorporates Fandiño's abalone growing initiative, to be developed through Galician Marine Aquaculture, in which EUR6 million (US$8.5 million) has already been invested to launch its production facilities within the next two years.

The period of integration begins for both groups via numerous synergies, leading to their strong presence as prominent suppliers within the Spanish seafood sector.