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Halifax-based Clearwater Seafoods announced on Monday a billion-dollar deal to sell the company to a partnership between British Columbia’s Premium Brands and a coalition of Mi’kmaw First Nations.
It is “the largest investment in the seafood industry by any indigenous group in Canada,” said a press release jointly released by the coalition and Clearwater.
The coalition will be led by the band Membertou in Cape Breton and Miawpukek in Newfoundland and Labrador.
Membertou chief Terry Paul said Mi’kmaq will retain Clearwater’s Canadian fishing licenses within a wholly owned Mi’kmaq partnership.
“This agreement is a time of transformation for all participating communities,” Paul told CBC News. “We will now have access to offshore fishing from a proprietary location.”
Mi’kmaw’s coalition will allocate $ 250 million for its stake and pay for it through a 30-year loan from the First Nations Finance Authority.
“I’m thrilled with it,” said Paul. “Now we are a player. In order to be in business, you must first play.
“You have to play to win, and we won.”
Leader of the crustaceans of North America
Clearwater is the largest shellfish producer in North America and holds Canadian harvesting licenses for a variety of species including lobster, scallop, crab and clam.
It also has collection operations in the UK and South America and a worldwide sales operation.
The deal was recommended by Clearwater directors and would see shareholders paying $ 8.25 per share. That’s a 15% higher premium than last week’s price and 60% higher than the price before Clearwater announced it was on sale in March.
The sale is expected to close in the first half of 2021.
“I am very pleased to recommend this transaction. It represents great shareholder value, leverages the experience within the company while promoting reconciliation in Canada,” Colin MacDonald, chairman of the board of Clearwater, said in a statement. .
“I am confident this transaction will enhance the culture of diversity and excellence of sustainable seafood that exists in Clearwater.”
Other Mi’kmaw bands show interest
The deal will see the Mi’kmaw and Premium Brands coalition create FNC Holdings to acquire Clearwater stock.
Several other Nova Scotia bands have confirmed their intention to join Membertou and Miawpukek, according to the announcement. They include Paqtnkek, Pictou Landing, Potlotek, Sipekne’katik, and We’koqma’q.
Membertou said the purchase will not detract from the First Nation’s current revenue or financial position.
Moderate subsistence fishing unaffected
Paul said the Clearwater deal won’t slow the push for moderate fishing in Nova Scotia.
Membertou and many other bands have started or intend to start self-regulated lobster fishing.
They are exercising a treaty right recognized by the Supreme Court of Canada, but the move has angered – and even provoked violence – by some non-indigenous commercial fishermen.
“Our investment in commercial offshore fishing is completely separate from our commercial coastal and moderate livelihood fishing,” Paul told CBC News.
“We are still incredibly committed to our other fisheries and to our communities on moderate livelihoods. This agreement does not affect the processes and discussions taking place in other fisheries areas.”
“Worldwide respected brand”
George Paleologou, CEO and President of Premium Brands, praised Clearwater as “a world-class seafood company with a great management team, the best products and a globally respected brand.”
“In partnership with us and the Mi’kmaw First Nations communities, it will become an even stronger business by leveraging the complementary strengths of our three organizations,” added Paleologou.
Clearwater was founded in 1978 by John Risley and Colin MacDonald.
Now in their 70s, they said the company went up for sale earlier this year as part of estate planning as their children weren’t interested in taking over the business.
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