In a blockbuster seafood deal, St. John’s-based Ocean Alternative Worldwide (OCI) has bought its Canadian offshore scallop quota — price an estimated $200-million — to a few Nova Scotia firms.
Ocean Alternative held 16.77 per cent of the offshore scallop quota, which is fished totally on Georges Financial institution off southern Nova Scotia.
A key driver within the sale was the sinking of the corporate’s manufacturing unit trawler Atlantic Future on Georges Financial institution in March 2021.
CEO Martin Sullivan says they opted to not change it.
“We needed to decide on a brand new vessel and with the present financial local weather, rates of interest and every thing it was a tough resolution to make,” Sullivan informed CBC Information.
“We have been our choices and we talked to those three Nova Scotia firms which have been business companions of ours for a very long time.”
Three Nova Scotia firms
The quota has been bought to Comeau’s Sea Meals of Saulnierville, LaHave Seafoods close to Lunenburg and Mersey Seafoods in Liverpool.
Nova Scotia firms have harvested OCI scallop quota for the reason that sinking.
“It is bittersweet for us to be trustworthy with you. We by no means need to promote quota. However you already know if we have been, we needed to offer a chance to the blokes within the business that we have recognized for a very long time. We needed to see if we might work a take care of them and we did not speak to anyone else,” Sullivan mentioned in an interview after the announcement.
Monetary phrases of the gross sales settlement weren’t disclosed however “everlasting” scallop quota sells for over $100-per pound, placing the worth of the OCI share at round $200 million.
The deal, introduced Thursday, was six months within the making.
Mersey Seafoods was one of many firms fishing OCI’s quota.
‘It is only a nice funding,’ says Mersey president
“It is only a nice funding for the corporate and hopefully sends a powerful signal to everybody at Mersey that we’re on this for the lengthy haul,” Mersey president Greg Simpson informed CBC Information.
5 years in the past, Mersey opened a brand new scallop processing plant at its Nova Scotia headquarters.
Simpson says the acquisition doubles its present scallop quota and may guarantee its two scallop vessels, Fortune Girl and Mersey Seven, are totally utilized.
“We expect we’ll be capable of catch most if not all of this extra quota. So our crews obtained the decision at present and have been fairly enthusiastic about what this implies for the remainder of the yr and into the long run,” he mentioned.
Nova Scotia firms now maintain your entire Canadian offshore scallop quota. Landings have been valued at $128 million in 2015.
Previous to the sale, Clearwater Seafoods held 43.8 per cent, Adams and Knickle 9.77 per cent, Comeau’s 16.68 %, LaHave 5.92 %, Mersey seven per cent and OCI 16.77 per cent.
Unstated vote of confidence for DFO
The deal features a gross sales and advertising and marketing settlement with Mersey Seafoods that can see Ocean Alternative proceed to promote Canadian sea scallops to its international buyer base.
Ocean Alternative is consolidating its fishing operations in Newfoundland and Labrador.
Underneath the deal, Ocean Alternative is buying Newfoundland and Labrador offshore quota for Greenland halibut and northern cod from Mersey, and Greenland halibut, Northern Cod and redfish from LaHave.
LaHave is buying Ocean Alternative’s Nova Scotia offshore quota for pollock, haddock, and flounder in addition to the corporate’s belongings in Riverport, N.S., in line with the settlement.
The funding can also be an unstated vote of confidence within the administration of the scallop fishery by Canada’s Division of Fisheries and Oceans.
The division has been below hearth for its administration of different fisheries within the area together with the infant eel or elver fishery. It introduced final week it intends to cancel the upcoming season as a result of it can’t management poaching.
