Scottish Sea Farms to buy Grieg Seafood Hjaltland UK in £164m deal

Scottish salmon farming company Scottish Sea Farms (SSF) has agreed to acquire local peer Grieg Seafood Hjaltland UK (GSHU).

SSF – which is co-owned by Norweigan SalMar and Lerøy Seafood Group – entered into a share purchase agreement to buy 100% of the shares in the Shetland business from Grieg Seafood for £164 million.

The deal forms part of SSF’s long-term strategy to strengthen its presence in the region, enabling it to deliver optimal biological performance and help meet rising demand for premium quality, Scottish-grown salmon.

Meanwhile, Andreas Kvame, CEO of Grieg Seafood, said: “The discontinuation of our salmon farming operations in Shetland is part of our communicated strategy, and the disposal represents an important milestone in Grieg Seafood’s strategy to concentrate future farming activities in Norway and Canada, where we see the largest potential for profitable growth.”

With operations in Shetland and Isle of Skye, GSHU currently has 21 active seawater sites, a freshwater hatchery and a processing facility – harvesting around 16,000 tonnes (HOG) of Atlantic salmon in 2020.

SSF says these establishments will complement its own operations, which are located across mainland Scotland, Orkney and Shetland. Last year, the business produced approximately 24,000 tonnes (HOG) of Atlantic salmon.

“The purchase of Grieg Seafood Hjaltland UK is a landmark step in our long-term strategy, giving us greater influence over several key biological factors including fish health, stocking regimes and sea lice management,” said Jim Gallagher, CEO of Scottish Sea Farms. 

“We’re very much looking forward to pairing the skill and know-how of our existing farming and fish health teams with the local expertise within Grieg Seafood Hjaltland UK, working as one to benefit fish welfare and boost survival. This, in turn, will ensure a more secure and stable supply of salmon,” he added. 

The transaction is expected to be completed within Q4 2021, subject to certain customary closing conditions and authority approvals.