Fishing group Sea Harvest signs R788 million deal to grow its international footprint
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Fishing group Sea Harvest has added to its international footprint by acquiring Australian group MG Kailis in a A$70m (R788m) deal.
The company said the deal would give it access to high-value species such as prawns.
MG Kailis has more than 50 years in the seafood industry and is well-established in prawn and fish trawling, seafood trading, and engineering business in Australia.
A 54.9 percent stake in Sea Harvest is owned by black-controlled and managed investment holding company Brimstone. During its last reported results in August last year, the group revealed that it had a net debt of R1.33bn at the end of the six months ending in June.
The acquisition was brokered through Sea Harvest owned Australian subsidiaries, Sea Harvest Australia Pty and Sea Harvest Marine, which generate just over a tenth of the group’s revenue.
"The Purchase Consideration will be settled in cash on the Completion Date and will be funded from a combination of cash on hand and available bank facilities," the company said.
According to the JSE- listed company, the acquisition was a significant step in the execution of its investment strategy, but was still subject to conditions which it hoped would be completed in April.
The acquisition includes vessels, licences, and fishing rights for prawns in the Exmouth region and fish in the Pilbara region, both in North-Western Australia.
Sea Harvest has been on a mission to acquire companies since it was listed on the JSE in March 2017. In 2018, The company and a consortium of black-owned companies entered into a transaction to acquire the fishing businesses of the Viking Group for R885 million.
In 2019, Sea Harvest acquired Ladismith Cheese in a R527m deal. Ladismith Cheese is located in the Western Cape and produces cheese that is distributed to supermarkets and major retailers.
BUSINESS REPORT ONLINE