Alaska's Silver Bay Seafoods has hired Cascadia Capital to conduct a third-party valuation report on the company that could pave the way for Dongwon, owners of the Starkist canned tuna brand and an investor in the group, to reduce its stake in the company.
'This request does not mean we have made a decision to sell shares in the company, but it is a tool to evaluate next steps," Silver Bay CEO Cora Campbell and President Troy Denkinger told company employees in a letter that it also shared with the media.
In 2014, Dongwon Industries invested $20 million for a 12.5 percent stake in Silver Bay Seafoods.
"Starkist/Dongwon reducing their ownership interest could create an opportunity for Silver Bay to seek another strategic partner to hold a minority interest in the company," the letter said.
"We have made no decision about a partnership and would only consider taking on a partner if we identify one with strategic value who is 100 percent aligned with our fishermen-first company values."
Founded in 2007 as a single salmon processing facility in Sitka, Alaska, Silver Bay is now one of the largest salmon processors in Alaska, operating six domestic processing facilities throughout Alaska and the West Coast.
Earlier this year, the company acquired Seattle-based value-added seafood processor Orca Bay Foods.
"This step allows Silver Bay Seafoods to enter secondary processing with a partner who has decades of experience and demonstrated success," Campbell said at the time.
The two companies already operate a joint venture, under which Silver Bay supplies seafood to Orca Bay, and Orca Bay in turn manages processing, sales and marketing.
"For those who recall the Starkist/Dongwon investment, this was an opportunity for some of the original shareholders to gain some liquidity and for the company to cement our relationship with an important partner, while maintaining the general ownership structure of SBS," the letter stated.
"It was a successful move for our growth trajectory back then, which is why we are exploring similar options now. We would expect this to be the model for a future partnership should one move forward."
