August 10, 2023

Mitsui invests in major Ecuador-based shrimp producer

Mitsui & Co., Ltd. decided on August 7 to invest in Ecuador-based Industrial Pesquera Santa Priscila (IPSP), said to be the world's largest shrimp farming company, through a holding company owned by IPSP's founders.

The acquisition price for shares is US$360 million. Following the acquisition of shares, the company will become an equity method affiliate of Mitsui. This is planned to be executed within the fiscal year ending March 2024, after the fulfillment of condition precedents, including obtaining the necessary approvals.

Shrimp is an important product that will meet the rising demand for sustainable protein, Mitsui said.

In Ecuador, Mitsui and IPSP's founders will jointly collaborate to pursue increased productivity and efficiencies to optimise operational excellence and best serve customer's needs. Both partners will work to maintain a high focus on social responsibility, respect for the environment, high product quality and will continue strengthening IPSP to lead modernisation of a growing industry.

Focusing on the potential of the shrimp industry, which is becoming increasingly industrialised and concentrated, Mitsui has invested in Minh Phu Seafood, a shrimp processing company based in Vietnam, in 2019 and has been strengthening the shrimp processing and sales business.

Through the investment in IPSP, Mitsui aims to become a leading global player in the shrimp industry by extending the value chain to upstream such as breeding, feed and farming.

Mitsui has identified Wellness Ecosystem Creation as one of its Key Strategic Initiatives in its Medium-term Management Plan 2026. By providing healty food, Mitsui will contribute to the improvement of people's quality of life. Through this investment, Mitsui will work to add value to the business cluster in the food and nutrition area, and aims to support the realisation of better lives by enhancing health and wellbeing through food.

The impact of this acquisition on Mitsui's consolidated financial results for the fiscal year ending March 2024 is expected to be minor.

- Mitsui & Co.