Sanford buys Pacifica Seafoods' business

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Fishing company Sanford Limited has entered into a conditional agreement with Pacifica Seafoods to acquire its Greenshell mussel and Pacific oyster businesses for $85 million.

"The acquisition of the Pacifica Seafoods business is highly complementary with our existing aquaculture business," Sanford managing director Eric Barratt said.

"It follows on from our acquisition of marine mussel farms from Sealord in 2009 and is totally consistent with our aquaculture strategy that we outlined in May this year," he added.

Barratt said the purchase combined New Zealand's two largest Greenshell mussel businesses and would consolidate Sanford's position.

The Pacifica Seafoods businesses and assets included more than 70 marine farms, 400ha of water space and 800 mussel longlines together with lease, share and contract farming operations that include a further 130ha of space and 300 mussel longlines.

Sanford would employ 295 Pacifica Seafood staff members, during peak season, on the same terms and conditions.

However Barratt said some restructuring would be required as roles might be duplicated but any affected staff would be advised as soon as possible.

Sanford will fund the acquisition using a new three-year debt facility provided by its existing banks.

The acquisition would be completed on November 30, subject to conditions.

- NZPA