Marine Harvest have entered into an agreement to purchase Northern Harvest, a leading East Coast Canadian salmon farmer.
The company is fully integrated with its own broodstock, smolt/hatchery, farming sites and processing operations. The potential acquisition supports Marine Harvest’s long term strategy of being a world leading and integrated producer of seafood proteins, Marine Harvest said in a statement.
The acquisition price on a cash and debt free basis is CAD 315 million, and the intention is that the consideration will be paid in cash using available credit lines under Marine Harvest’s existing revolving credit facility.
Northern Harvest is expected to harvest 19 thousand tonnes (GWE) of salmon in 2018, and has currently 45 farming licenses in Newfoundland and New Brunswick. The company has an additional 13 farming licenses in application mode.
The transaction is subject to approval by relevant competition authorities and customary closing conditions.