December 20, 2016

Marine Harvest nominated to purchase farming assets on East Coast of Canada

Marine Harvest announces that the company has been nominated by the receiver of all assets owned by the Gray Aqua Group of Companies, to purchase the latter.
 

The acquisition price on a cash and debt free basis is CAD15 million (US$11.2 million). The company is based on the East Coast of Canada and is currently in receivership. The acquisition is important from a strategic point of view, as it further broadens Marine Harvest's global farming footprint in a country where the company is already present on the West Coast. The market for salmon in North-East America continues to develop very favourably, and the acquisition represents as a compelling value proposition, Marine Harvest adds.

The assets purchased include one hatchery in New Brunswick, two farming licenses in New Brunswick, seven farming licenses in Newfoundland, and one processing plant in Newfoundland. Currently, no fish has been stocked in the above mentioned licenses. In addition, the company has applied for 17 farming licenses in Newfoundland which are yet to be approved. Marine Harvest is looking forward to engage with the relevant authorities to secure additional farming locations as well as to establish new jobs in the local communities.

Marine Harvest will shortly start to detail a production plan and investment framework for the East Coast of Canada, including building an organisation capable of producing 15,000-20,000 tonnes gutted weight equivalent of salmon per annum.

Closing of the transaction is subject to signing a final purchase agreement as well as approval by the Court of Queen's Bench of New Brunswick.