Norwegian Grieg Seafood acquires Canadian salmon producer

Grieg Seafood ASA has signed Share Purchase Agreements for the acquisition of Grieg Newfoundland AS in Newfoundland, Canada. The Newfoundland project includes exclusivity for salmon farming in Placentia Bay, which has a farmable area bigger than the Faroe Islands.

The project currently comprises licenses for 11 sea sites. three licenses are approved, and another three are expected to be approved in 2020. The rest are in different stages of application, the company said. The project also includes a high-end recirculating aquaculture system (RAS) smolt facility, which began construction in April 2019. The project has a long-term annual harvest potential of 30 000 – 45 000 tonnes Atlantic salmon.

“For the past few years, we have focused on utilizing our existing licenses with success. This year, we will reach our target of 100 000 tonnes. Now we are ready for the next step on our growth journey. By developing salmon farming operations in Newfoundland, using cutting-edge technologies at all stages of the production process, we are strengthening our position as a global leader in sustainable salmon farming,” said Grieg Seafood CEO, Andreas Kvame.

“The US market is the world’s largest and fastest growing market for Atlantic salmon, but only a third of US demand is currently met by North American production. We already have a position in this market through our operations in British Columbia, where we have attained significant sales and marketing experience. With close proximity to important markets on the East Coast of the US, this acquisition significantly strengthens our US market exposure and opens up for synergies with existing operations.

The Newfoundland project includes long-term exclusive farming rights to the Placentia Bay area. The marine sites are in an area with favourable biological conditions for salmon farming, the company said. The temperature profile is similar to Grieg Seafood’s Norwegian operations. Fluctuating temperatures in the water can occur in Newfoundland, with low temperatures in the winters and a recent incident of high summer temperatures in another part of the island. The area is highly isolated.