Canadian aquaculture company Cooke has entered into a definitive agreement under which it will acquire (via a wholly-owned Australian subsidiary) all outstanding shares of Australian salmon producer Tassal.
The outstanding shares will be bought for AUD 5.23 per share by way of a scheme implementation deed and will give Tassal an enterprise value of AUD 1.7 billion (approx. $1.2 billion).
Tassal is the largest vertically integrated seafood producer and blue agri-tech business in Australia and employs over 1,700 people. The company distributes salmon and prawns through its De Costi Seafood business in Lidcombe, New South Wales, where it also manufactures a wide range of seafood.
The deal will enable Cooke to access Tassal’s salmon farms, which span five marine zones, four freshwater hatcheries and four processing facilities in Tasmania, as well as its fish and seafood processing businesses in New South Wales and Queensland.
Glenn Cooke, CEO of Cooke, said: “Tassal is an excellent fit with Cooke, as we see many similarities between our two companies. Our people and communities are very comparable as well, with agriculture, fisheries, aquaculture and forestry prominently supporting export-driven economies.”
He added: “Our family-owned company is keen to have the opportunity to continue to grow Tassal from the strong base the employees, management and board have created…We have demonstrated acquisition history where Cooke has left operations management in place for continuity. We are highly impressed with the quality of Tassal’s infrastructure, people and culture.”
According to Reuters, the scheme is not subject to any financing or due diligence conditions, and Cooke has advised that it has already obtained Foreign Investment Review Board approval for the deal.
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