akaroa (Photo credit: sandwichgirl)Alliance Select Foods International Inc. is taking over Akaroa Salmon NZ. Ltd., a New Zealand-based producer of fresh and smoked salmon, in line with its goal to be a leading exporter in key high-end markets globally.
In a disclosure to the Philippine Stock Exchange yesterday, Alliance Select said it approved the purchase of 80 percent of Akaroa for NZ$3.5 million (roughly $2.184 million).
Alliance Select said it would invest another $100,000 for Akaroa’s working capital needs as it aims to more than double the New Zealand firm’s existing production capacity.
Jonathan Y. Dee, president of Alliance Select, said the company intends to undertake a private placement of shares to fund the acquisition of Akaroa. It will issue 60.667 million shares, constituting 5.67 percent of its expanded capital, at P1.60 each, which is a 14.57-percent premium on the 30-day volume weighted average price covering May 17 to July 2.
Dee said Akaroa’s founder, the Bates family, will keep the remaining 20 percent, with Duncan Bates retaining his post as general manager.
Akaroa was set up in 1985 and over the years has established the Akaroa Salmon brand as the premium quality brand in the country. Akaroa has been the recipient of various awards and accolades from New Zealand’s food industry, the latest being the Cuisine Artisan Awards 2011.
Akaroa also holds a 20 percent stake in Salmon Smolt NZ Ltd., a modern hatchery guaranteeing high quality and consistent supply of smolts (juvenile salmon) for Akaroa’s farms.
The company is only one of the three companies in New Zealand that can supply fresh salmon to its customers throughout the year. The firm’s supply chain process enables it to deliver fish to its clients within six to 24 hours of receipt of their order.
Dee said the group’s investment in Akaroa will further strengthen Alliance Select’s salmon portfolio. Akaroa is a fully integrated company which will give Alliance Select direct access to raw materials.
In addition, it will allow Alliance Select to target an additional market segment by offering Akaroa’s fresh portion cuts to institutional and retail buyers like hotels and restaurants in markets like Singapore, Hong Kong, USA, Korea and Japan.
Dee said Alliance Select remains committed to growing its salmon business. Since its first foray in the product, the company has grown its salmon business about five fold from $4.2 million in 2009 to an expected turnover of $23 million this year.
