Grieg Seafood sells its Shetland operations to Scottish Sea Farms
Scottish Sea Farms and Grieg Seafood today announced that Scottish Sea Farm acquires Grieg Seafood Shetland. The business transfer includes 21 active farm sites across Shetland and Skye, a new land-based feeding central, a freshwater facility and a processing plant.
Scottish Sea Farms will welcome Grieg Seafood Shetland’s 203 talented employees. The price of the acquisition (Enterprise Value) is GBP 164 million.
Grieg Seafood Shetland has been through a rigorous process of restructuring and improvements over the last years, which is now showing results. Sea lice levels are at an all-time low, reduced by 85% at the end of May compared to last year. Survival rates have improved to 90%.
Grieg Seafood ASA announced plans to sell its Shetland operations last autumn, to focus on farming activity in Norway and Canada.
Andreas Kvame, CEO of Grieg Seafood ASA, said:
“I want to sincerely thank all employees of Grieg Seafood Shetland for their efforts for the company, especially during the difficult times of the pandemic.
Grieg Seafood Shetland has worked diligently on improvements across the board over the last years, which are now bearing fruits with higher survival, lower sea lice levels and more sustainable operations. I am pleased that we are handing over operations in good shape.
Going forward, Grieg Seafood will narrow our focus, resources and investments to Norway and Canada to strengthen our presence in these production regions. As such, is it only right to let others, who have Shetland high on their agenda, develop the Shetland operations further.
I am pleased that another innovative and responsible salmon producer like Scottish Sea Farms will take over the operations, and I am confident that they will keep creating value for the local communities in Shetland for years to come.”
Grant Cumming, Managing Director of Grieg Seafood Shetland, said:
“I want to thank all employees for their impressive efforts, hard work and dedication over the last years, and especially during the pandemic. Through teamwork, our operations are in a better and more sustainable shape than ever, and have a great foundation for further development.
I also want to thank the Shetland and Skye communities for their support over many years. I am delighted that the future of Grieg Seafood’s salmon production is in the safe hands of Scottish Sea Farms and I look forward to salmon farming continuing to play a major role in the future of Shetland and Skye’s economy.”
The transaction is subject to certain customary closing conditions. It is expected to close within Q4 2021, depending on processing time with relevant competition authorities. Meanwhile, business will go on as usual.
Formally, Scottish Sea Farms acquires the shares of Grieg Seafood Hjaltland UK Ltd, which is the holding company owning Grieg Seafood Shetland Ltd.