The M&A activity in Canada's shellfish industry continues to move forward, with a fresh teaser for a Canadian lobster supplier making the rounds obtained by IntraFish.
The teaser highlighting the deal stated that the Atlantic Canada company produces around 5 million pounds (2,268 metric tons) per year of cooked and raw lobster products from its 62,000 square-foot facility, with capacity to process up to 70,000 pounds (32 metric tons) of raw material a day, and existing capacity to expand production by 50 percent.
The company, whose name and location is not revealed in the teaser, is cited as selling to Publix, Sobeys, Red Lobster, Chicken of the Sea, High Liner and Ocean Blue among its client base.
Patrick Dodier, a co-owner of lobster processor Seafood 2000, said earlier IntraFish reporting that Seafood 2000 was the company listed in the teaser was inaccurate. Seafood 2000 is not actively seeking a buyer he added, and has not been seeking one in recent months.
Avi Suriel, managing director of California-based GT Securities, which is listed as the advisor on the deal, declined to comment to IntraFish on the document.
The teaser lists the company's key market is the United States, which accounts for 80 percent of its sales, but it also sells into Canada and Asia and has projected earnings before interest, tax, depreciation and amortization this year of CAD 8.5 million (€5.5 million/$6.7 million), with revenues of CAD 43 million (€27.6 million/$33.8 million). The teaser claims that EBITDA margin is twice the industry average.
The Atlantic Canada lobster market is worth around $2 billion (€1.6 billion), representing 40 percent of global market share.
Companies based in Canada's Maritimes provinces have been among the most actively consolidating sectors in recent years.
Last month, Canada's Premium Brands Holdings Corporation and a coalition of Mi'kmaq First Nations entered into a definitive agreement to acquire Clearwater Seafoods, one of Canada's largest seafood companies.
In addition, New Brunswick-based Cooke Inc. has inked several deals in the past few years, including most recently the acquisition of US seafood supplier Mariner Seafood.