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Clearwater Seafoods Incorporated made a sudden announcement on Monday that it is being sold for an estimated $1-billion. The publicly-traded company is being sold to a new company called FNC holdings, which is owned by a Mi’kmaq First Nations coalition and B.C.-based Premium Brands Holdings. Both the coalition and Premium Brands will have a 50/50 stake in the sale.
In its press release, Clearwater mentioned that reconciliation with Indigenous peoples was one of the factors in the sale.
“I am very pleased to recommend this transaction. It represents great value for shareholders, leverages the expertise within the company while advancing Reconciliation in Canada,” said Colin MacDonald, Chair of the board of directors of Clearwater, in the press release. “I am confident that this transaction will enhance the culture of diversity and sustainable seafood excellence that exists at Clearwater.”
Clearwater investors will receive $8.25 per common share if the sale goes through. The Clearwater Board of Directors approved the sale, but it needs to be ratified by the shareholders. Even after being sold, Clearwater states it will still operate “a distinct entity thereby ensuring continuity for its brand, employees and significant community involvement.”
Clearwater had indicated back in March that it was looking for a potential buyer. It said that it has formed a special committee to evaluate “strategic alternatives” for the company, including a sale. The move came after Clearwater received several informal offers from potential buyers.
RELATED: Clearwater Seafoods Preparing to Sell
The timing of the sale is interesting, given the debate happening in Nova Scotia around the lobster and seafood industry, regarding Indigenous fishing rights and treaties.
With many debating whether moderate livelihood fisheries is bad for conservation, some have pointed out the Clearwater owns a license that allows them to fish offshore all year round.
In September, Clearwater sold buy two of Clearwater’s eight lobster licenses to the Membertou First Nation for a total of $25-million.
RELATED: Membertou Chief Calls Lobster License Purchase ‘Historic Investment’
In the press release about the sale of the company, Chief Terry Paul of the Membertou First Nation says several First Nations in Atlantic Canada will be taking part in this historical purchase.
“This collective investment by First Nations in Clearwater represents the single largest investment in the seafood industry by any Indigenous group in Canada,” Sais Paul. “Each of Paqtnkek, Pictou Landing, Potlotek, Sipekne’katik, and We’koqma’q have confirmed their intention to participate with Membertou and Miawpukek in this historic investment.”
Premium Brands owns a broad range of leading specialty food manufacturing and differentiated food distribution businesses with operations across Canada, the United States and Italy.
Derek Montague is a reporter for Huddle, an Acadia Broadcasting content partner.
