January 26, 2021

By Lynda Kiernan, Global AgInvesting Media

Premium Brands Holdings Corporation and a coalition of Mi’kmaq First Nations led by Membertou and Miawpukek, and including Sipekne’katik, We’koqma’q, Potlotek, Pictou Landing and Paqtnkek communities, have closed the largest investment in the seafood industry ever undertaken by an Indigenous group in Canada. 

Originally announced in November 2020, Premium Brands and the First Nations agreed to acquire Clearwater Seafoods – one of the largest vertically integrated seafood companies in North America, and the largest license holder for shellfish in Canada – for C$8.25 per share, or approximately C$1 billion (US$790 million). 

Clearwater, which is known as a steward of food safety and a reliable supplier of diverse, premium wild scallops, lobsters, clams, coldwater shrimp, langoustine, whelk, and crab will continue to operate as a distinct entity.

Under the terms of the deal, a newly-formed Canadian entity, wholly-owned by the Participating Communities, will acquire all of the Canadian seafood licenses held by Clearwater – the impact of which is being called “transformational”, and will have an effect for generations in the Mi’kmaq communities across Nova Scotia, Newfoundland, and Labrador.

“This represents a historic opportunity for the Mi’kmaq to strengthen our role in Canada’s commercial fisheries, including playing a much larger part in its unique deep-water fisheries,” said Chief Terry Paul, Membertou First Nation, in November. “Mi’kmaq will not only become 50 percent owners of Clearwater with our new partner, Premium Brands, but will proudly hold all of Clearwater’s Canadian fishing licences within a fully Mi’kmaq owned entity. 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.”

The combination of Clearwater’s operations with Premium Brands and the Participating Communities creates an entity whereby each partner will be able to leverage the strengths of the others. Clearwater’s global distribution infrastructure and unequal wild-catch seafood is coming together with the Participating Communities’ access to unique sources of high-value, wild-catch seafood and Premium Brands’ expertise in value creation, brand development, and North American customer relations.

It also creates a long-term “made in Canada” entity that is expected to generate more than C$1.3 billion (US$1 billion) in annual sales, 89 percent of which will be generated outside the country.

“We are very excited to have a world-class seafood company like Clearwater join our ecosystem,” said George Paleologou, president and CEO, Premium Brands. “The combination of its best-in-class management team, differentiated products and world renowned reputation for quality with our value-add expertise, brand development capabilities and extensive customer relationships in North America will strengthen Clearwater’s business and position it to accelerate its growth.”

Paleologou added, “We are also very pleased to be partnering with the Membertou, Miawpukek, Sipekne’katik, We’koqma’q, Potlotek, Pictou Landing and Paqtnkek communities. We all share a common long-term vision for Clearwater and its continuing development as a global leader in premium seafood.”

Ian Smith, president and CEO of Clearwater, added, “We are delighted to be working with Premium Brands and the Mi’kmaq to continue to grow and strengthen our business while preserving our culture and community presence. This partnership positions us to continue building on the legacy of our founders, Colin MacDonald and John Risley, while we embark on the next chapter of a remarkable Atlantic Canadian success story.”

 
– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com.