Miami-based seafood group Blue Star Foods announced Tuesday it is acquiring the assets of Gault Seafood, a company using a recirculating aquaculture system (RAS) to farm Atlantic blue crab.
Gault Seafood has been in operation for close to 20 years and is based in Beaufort, South Carolina.
Blue Star Foods has for years specialized in crab but recently moved into land-based salmonid farming via its acquisition of steelhead salmon farming operation Taste of BC Aquafarms.
Gault Seafood has developed RAS technology that will allow Blue Star Foods to modify the molting cycle of Atlantic blue crab so it can harvest them in the off-season, the company said.
The US blue crab season starts in March in Louisiana and moves slightly northward every couple of weeks until it closes in September in New Jersey.
Outside of this window, it is almost impossible to get any of this product and bring it to the North American market, Blue Star said.
Deal aligned with acquisition strategy
The acquisition of Gault Seafood is part of Blue Star Foods' acquisition strategy, which is to acquire new innovative technologies or companies that diversify its offering of marine protein species, said John Keeler, CEO of Blue Star.
The acquisition is being done through a combination of cash and equity and is expected to close in the first quarter next year.
Earlier this year, Blue Star Foods acquired land-based steelhead salmon farming operation Taste of BC Aquafarms. At the time, Keeler said company plans to produce 21,000 metric tons of product by 2028.
In 2019, the company acquired South Carolina-based Coastal Pride Company, through its John Keeler & Co. subsidiary. Coastal Pride specializes in importing pasteurized and fresh crabmeat from Mexico and Latin America, serving North American customers.
Last year, the company changed trading platforms from the OTC market to the Nasdaq Stock Market. Keeler said the company ultimately opted to apply for a listing on the NASDAQ "because it is more favorable for food-tech companies."
Blue Star Foods has struggled in recent years and has made moves to turn around the company. Last year, it saw its revenue sink by 40.8 percent to $14.1 million (€12.2 million) due to a sharp decline in volume sales from COVID-related shutdowns.
