Sea Harvest Group has recently concluded the purchase of certain of Terrasan Group Limited’s subsidiaries. Specifically, 100% of its pelagic business and 63,07% of its abalone business (Aqunion) for an initial cash- and share-settled consideration of R965 m.
Felix Ratheb, CEO of Sea Harvest Group, said the company welcomed Terrasan, with a rich history spanning 60 years, as its second largest shareholder. “This transformative transaction creates the largest abalone business in the Southern Hemisphere and one of the largest black-owned diversified fishing businesses in South Africa.”
The purchase of the vertically integrated pelagic business, with its own factory in St Helena Bay, fishing vessels and recently renewed fishing rights, adds wild caught pelagic species and related value-added processed products, including fish oil, fish meal and canned fish, to Sea Harvest’s existing business. The acquisition enables Sea Harvest to better use its own small sardine and anchovy catch and adds a 119-year-old canned fish brand to its own 60-year-old hake brand.
Sea Harvest’s own existing abalone business will benefit from Aqunion’s mature biomass, intellectual property, and expertise. The 30-year-old, cash-generative, vertically integrated business operates out of Hermanus and Gansbaai, and produces and sells dried, canned and live abalone to a diversified customer base across the Far East.
Fred Robertson, Sea Harvest Group Chair, said the transaction moves them forward on their journey of achieving their vision of being the leading, black-owned, diversified and responsible South African fishing and seafood business. “Central to our values as a company, the proposed transaction will benefit Terrasan and Sea Harvest employees by securing jobs in the rural communities of Saldanha, St Helena Bay, Gansbaai, Buffeljags, Kleinzee and Hermanus.”
Danie du Toit, Terrasan Group CEO, said that the merger would create a South African abalone business of scale, while the synergistic relationship with Sea Harvest would place it in a champion position to exploit international opportunities and successfully compete in its target markets.
