Tassal has ended market speculation with news that its rumoured acquisition of fish processor De Costi Seafoods is in the works.
Although the deal has not been completed, the listed salmon processor says due diligence on De Costi has been completed and the board has agreed to proceed with the sale.
De Costi is a seafood procurement, processing and sales and marketing business, and Tassal Group MD and CEO Mark Ryan described the purchase as a “compelling strategic acquisition”.
“De Costi Seafoods provides Tassal with an attractive vehicle to deliver the company's salmon and seafood growth strategy, which is about maximising domestic market per capita consumption of seafood," he said.
“This acquisition would allow us to build on Tassal's successful domstic market focus with salmon, increase Tassals vertical integration in samon , and further drive scale, and the efficiencies nad benfits that will flow from the increased scale that the seafood offering will bring.”
Company founder and managing director George Costi will remain in charge of the De Costi operations for at least three years, reporting to Ryan.
Tassal says it will acquire the business by a share purchase. The deal does not include the business trading at the Sydney Fish Markets or two retail outlets at Bondi and Chatswood in Sydney.
