“We are always looking for strategic development and investment opportunities in the seafood sector,” said Glenn Cooke, CEO of Cooke Aquaculture. “This purchase gives us a unique platform for our European operations and is a good fit with our Spanish sea bass and sea bream farming company, Culmarex. We will be able to leverage our global relationships with suppliers and build on Meridian’s excellent market reach into both the European and US marketplace.”
Meridian was created through the acquisition of multiple farming operations, including The Lakeland Group and Mainstream Scotland. Today, Meridian is a top-performing salmon farmer when measured against other salmon farmers both in Scotland and internationally.
“We believe this investment in the well respected Scottish industry creates value for our entire group and strengthens our European foothold,” explains Mr. Cooke. “Meridian generated revenues in 2013 of CAD151.3 million and a corresponding EBITDA of CAD 44.3 million. The company is highly profitable and expects a significant EBITDA increase going forward. This will be driven by an increased sales price per kg that will be achieved when it is operated as an independent company. Meridian is also a cost effective producer with a dedicated management team and employee base. There are many similarities between our corporate cultures and the pristine natural environments and high environmental standard of our farming operations.”
This transaction is consistent with Cooke Aquaculture’s focus on vertical integration and diversification in terms of geography, products and markets. Cooke’s strategy has been to achieve growth through acquisitions and organic growth that is both sustainable and responsibly managed to meet market demand.
Meridian produces a high proportion of superior quality and accredited salmon, including organic and Label Rouge. The company also focuses on delivering quality fresh products to European markets within a few hours from harvesting.
Closing of the transaction is expected in the second quarter.
Cooke was advised in this purchase by Markó Partners, a research and corporate finance boutique focusing on the seafood industry. Stewart McKelvey acted as general counsel and Thommessen acted as local counsel.
Cooke Aquaculture Inc. is a Canadian family-owned company with a head office in Black’s Harbour New Brunswick and North American salmon farming operations in Atlantic Canada and Maine. It also owns Salmones Cupquelan, a salmon farming company in southern Chile and Culmarex, a sea bass and sea bream farming company in southern Spain. Cooke’s sales and marketing division, True North Salmon, sells a broad spectrum of fresh, farmed seafood products into the Canadian and US markets. Over the past twenty-eight years Glenn Cooke and his family have built a fully integrated aquaculture company, which will have nearly a billion dollars in annual sales and 2500 employees following the Meridian acquisition.
Source: Cooke Aquaculture Inc.
