Sanford yesterday confirmed it had entered into a conditional agreement with Pacifica Seafoods to buy its greenshell mussel and Pacific oyster businesses for $85 million.
The deal hinges on pre-arranged funding becoming unconditional tomorrow.
As reported on Saturday in the Otago Daily Times, Pacifica Seafoods is part of the Skeggs Group and is one of New Zealand's largest privately-owned aquaculture producers and exporters.
Sanford received clearance last week from the Commerce Commission to make a bid for the business.
Sanford managing director Eric Barratt said yesterday the acquisition of the Pacifica Seafoods business was complementary to Sanford's existing businesses.
"It follows on from our acquisition of marine mussel farms from Sealord in 2009 and is totally consistent with our aquaculture strategy that we outlined in May this year."
The acquisition would combine New Zealand's two largest greenshell mussel businesses and would consolidate Sanford's position as New Zealand's top aquaculture producer and exporter, he said.
The deal was expected to be completed on November 30, subject to the satisfaction of remaining conditions.
Sanford would fund the purchase using a new three-year debt facility provided by its existing banks, Mr Barratt said.
All Pacifica employees were required to be offered employment on at least the same terms and conditions as they were employed on now.
However, there would be some restructuring required between Sanford existing employees and the new Pacifica employees where the roles might be duplicated.
All affected employees in that category would be consulted as soon as possible, he said.
THE DEAL
• Ownership of more than 70 marine farms, 400 hectares of water space and 800 mussel longlines together with lease, share and contract farming operations that include a further 130ha of space and 300 mussel longlines.
• A 40% interest in an approved 2695ha mussel farm development in Pegasus Bay, North Canterbury.
• A large and modern mussel and salmon processing facility in Christchurch.
• Ten marine farm servicing and harvesting vessels.
• Various properties near the Marlborough Sounds and in Christchurch.
• Pacifica's interest in a co-operative marketing company which markets mussels in China under the "Pure New Zealand Greenshell Mussels" brand.
• About 295 employees during peak season
