BRAZIL— Two Brazilian Seafood companies, Frescatto Company and Prime Seafood have announced their merger in an all-share deal that is expected to boost their market presence.

Announced in a joint statement, both companies claimed that the move is also set to enhance competitiveness and expand Frescatto’s reach, particularly in key markets like China and the US.

Both companies are coming from successful financial years – Frescatto, located in Rio de Janeiro, reported US$260 million in revenue in 2023, while Prime reported US$60 million.

With both companies collectively process over 30 million kilograms of fish annually, the merger is expected to generate a combined turnover of $400 million in 2024.

Renowned for its export experience, Prime Seafood enhances Frescatto’s ability to supply high-quality seafood products to customers across the globe by contributing important certifications and a large supplier network.

Thiago De Leca, CEO of Frescatto, expressed optimism about the deal, highlighting the opportunity to diversify product offerings and expand market access.

“We will be able to bring quality products Prime sells to Frescatto customers, such as lobster, snapper, and golden corvina, among others. Furthermore, Frescatto offers the opportunity to export other species unavailable in the Prime Seafood production line.” He added.

In the joint statement, both companies also explained that the anticipated gains resulting from the merger are expected to stem primarily from the development of new business opportunities rather than from cost-saving measures.

“The gains will come from new businesses, not from cost savings. It is a merger of complementarity and synergy,” De Luca said.

The deal is projected to consolidate the Brazilian fish business and building a global consumer base for Frescatto, according to Prime Seafood President Eduardo Lobo.

The merger will also facilitate operational integration across seafood plants and distribution centers in Brazil, further enhancing production capacity and supply chain efficiency.

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