August 19, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

Cooke Inc., the parent company of Cooke Aquaculture in New Brunswick, Canada, has reached an agreement to acquire Tassal Group (Tassal), the largest vertically integrated seafood producer in Australia, for A$1.1 billion (US$760 million). 

(Fourth time’s a charm, as Tassal reportedly refused Cooke’s first three takeover bids.)

“Tassal is an excellent fit with Cooke, as we see many similarities between our two companies,” said Glenn Cooke, CEO, Cooke Inc. “Our people and communities are very comparable as well, with agriculture, fisheries, aquaculture, and forestry prominently supporting export-driven economies.”

In business for more than 36 years and listed on the Australian Securities Exchange (ASX), Tassal farmed 40,000 metric tons of Atlantic salmon and 5,500 metric tons of Black Tiger Prawn last year for both the domestic and export markets in Asia, New Zealand, and the U.S.

Tassal’s salmon farms span five marine zones, and its freshwater hatcheries and four processing facilities are located in Tasmania, while its prawn farming, processing and seafood processing activities are all conducted in New South Wales and Queensland.

The seafood that the company produces is distributed through its De Costi Seafood business headquartered in Lidcombe, New South Wales, where it also sources and processes a wider range of seafood lines. Its salmon is offered as fresh deli-grade, fresh packaged, and smoked for supermarkets, and its prawns are marketed under the Tropic Co. trademark through supermarkets, delicatessens, and fish markets.

“Our family-owned company is keen to have the opportunity to continue to grow Tassal from the strong base the employees, management and board have created,” commented Cooke. “We have a demonstrated acquisition history where Cooke has left operations management in place for continuity. We are highly impressed with the quality of Tassal’s infrastructure, people and culture.”

Cooke is the sixth largest salmon farming operation in the world, with production of 115,000 metric tons per year. Similar to Tassal, Cooke’s feed mills, hatcheries, farms, and processing activities are all accredited by third-party organizations. The addition of Tassal to the business through this deal will lift Cooke’s output to 155,000 metric tons. Given that strong demand for low carbon footprint, affordable, and nutritious protein drove global farmed salmon production to a total of 4 million tons, this deal elevates Cooke toward being a top-five global producer.

“We believe in sustainably produced food and in responsibly harnessing our precious water resources,” said Mark Ryan, managing director and CEO, Tassal. “Our responsible business blueprint sets out how we will do this to ensure a prosperous, healthy planet for future generations.”

Cooke stated, “We understand completely that the Tasmanian fish farming industry is Australia’s most valuable seafood production sector, and our top priority will be to work with other producers and government regulators on continuous environmental improvement plans as well as strengthening supply chain and local community relationships.”

Valuable indeed. Despite a global pandemic, Australian salmon exports nearly doubled in value in 2020, jumping 97 percent from $125 million to $247 million on the back of increased demand from ASEAN nations and the U.S., according to the Australian government’s Department of Agriculture, Water, and the Environment. 

“Combining our two companies’ people-first cultures and our shared passion for producing top quality seafood, is a natural fit. A future acquisition by Cooke enables Tassal to fast-track our goal to be one of the world’s most transparent and sustainable protein producers,” said Mark Ryan, managing director and CEO of Tassal.

~ Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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