Sea Harvest acquires two South African peers to strengthen market presence

SOUTH AFRICA – Seafood and aquaculture company, Sea Harvest, is expanding its presence in the seafood market through the acquisition of two businesses: West Point Fishing and Aqunion.  

The acquisitions are part of a deal with Terrasan, a South African investment group focused on fishing, aquaculture, and property, with an estimated value of R964.8m ($50.7m). 

 West Point is a vertically integrated pelagic fish business located in St Helena Bay, Western Cape.  

With over 600 employees, the company operates a fishing fleet that catches sardines and anchovies, producing fish oil, fish meal, and canned fish predominantly for export.  

The company also owns the Saldanha brand which offers canned fish primarily for the South African market. 

 On the other hand, Aqunion is a vertically integrated abalone business based in Hermanus and Gansbaai, Western Cape. Employing 430 people, Aqunion offers dried, canned, and live abalone to a diverse customer base across the Far East. 

 Sea Harvest CEO Felix Ratheb believes that these acquisitions will bring value and diversification to the company’s portfolio.  

With a focus on wild-caught pelagic species, the acquisitions will allow Sea Harvest to expand its offerings, including fishmeal, fish oil, and canned fish.  

Sea Harvest also aims to enhance its small pilchards and anchovy pelagic quota through forward integration into canning and fishmeal and fish oil production. 

 Sea Harvest anticipates increased export earnings post-acquisition as fishmeal, fish oil, and abalone are in high demand globally.  

Additionally, the integration of the pelagic business will optimize resource utilization by allowing catch landing on both the west and east coasts of South Africa. 

 The abalone business, known for its maturity, high margins, and cash generation, will provide Sea Harvest with a diversified international customer base and market. This acquisition will further expand Sea Harvest’s market access and strengthen its position as a listed entity in the fishing industry. 

 The total purchase amount of R965 million will be settled with R600 million in Sea Harvest shares and the remainder in cash, along with two performance-linked earnout amounts. 

 The transaction is subject to regulatory approvals, as well as the approval of Sea Harvest and Terrasan shareholders, along with conditions expected for a transaction of this nature.

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