The total purchase price for 100 per cent of Baja Aquafarms will be USD 28 million. (Photo: Umami Sustainable Seafood)
Umami announce complete acquisition of Baja Aquafarms
Monday, October 04, 2010, 22:10 (GMT + 9)
Umami Sustainable Seafood, Inc. has announced that its Board of Directors have decided to move forward and complete the acquisition of Baja Aquafarms, a leading producer of bluefin tuna based in Mexico.
As reported in July 2010 the Company acquired a 33 per cent stake in Baja. The Board of Directors have now decided to exercise its option to acquire the balance of the shares in Baja, with closing scheduled to take place by 30 November. Under the terms of the acquisition agreement, the total purchase price for 100 per cent of Baja will be USD 28 million in a combination of cash and stock (of which USD 8 million has been paid to date), together with various working capital advances to be made to Baja by the company through the application of proceeds of inventory sales during the balance of the year.
In announcing the revised agreements, Oli Steindorsson, Chairman of the Company stated; "I am very pleased that our Board and that of Baja, have decided to move forward for Umami to complete the acquisition of 100 per cent of Baja which is the leading bluefin tuna operation in Mexico. Completion of this acquisition would represent a key step in our strategy of becoming the world's leading producer of bluefin tuna. Coming off the back of very successful fishing seasons in both our Croatian and Mexican operations, we are in a situation of being well stocked with inventory at a time of sharply rising prices."
According to a press release by Umami Sustainable Seafood, Steindorsson said that: "Against the background of our recent expansion and continuing improvements in our existing operations, we believe that our financial performance will be significantly enhanced by our combination with Baja, particularly given the synergy to be derived from rationalization and consolidation of our marketing and distribution. Following the acquisition of Baja and on a combined basis, we believe that Umami will account for over 20 per cent of the global market for farmed bluefin tuna, which will elevate the operating scope of our well refined, sustainable production platform and should enable us to have a meaningful impact on efforts to normalize the global supply of bluefin which has historically suffered from overfishing."
Umami Sustainable Seafood owns and operates Kali Tuna, which is an established Croatian-based aquaculture operation raising Northern bluefin tuna in the Croatian part of the Adriatic Sea. The company intends to become the leader in the Northern bluefin tuna industry by acquisition and internal growth.
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