Hong Kong listed investment group, Legend Holdings, has acquired 90% of Australian seafood company, KailisBros. for an undisclosed amount, reports ABC. Under the structure of the deal, the processing business acquired from Kailis Bros will serve as the foundation for a joint venture between Legend and Kailis to be called KB Food, in which the Kailis family will own 10% and Legend will own 90%. Matthew Kailis will be named CEO of the joint venture, while George Kailis and Nicholas Kailis will retain their positions as managing directors within the business, according to Undercurrent News.
With annual sales reaching $513 million according to the company’s latest Australian Securities and Investments Commission return, Kailis Bros. is the 14th largest privately-owned business in Western Australia, reports Business news. Kailis Bros’ Leederville café, its retail fish operations, and its Perth fish market will not be included in the deal, but will remain under total ownership and operation by the Kailis family.
Both companies see this deal and KB Foods as an opportunity to pursue growth both domestically and in international markets. Matthew Kailis said that both Kailis and Legend, which began in 1984 with a focus on IT but has since diversified its holdings, “see significant opportunities in Australia and around the world to build on our strong foundations with investments in fishing and aquaculture, seafood processing and distribution”, reports Undercurrent News.
“With our capital backing we intend to invest in the business to grow its Australian operations with new capabilities, new products, new technologies and greater market presence,” said Shaopeng Chen, Senior vice president with Legend Holdings, according to The Australian.