M&A INTERNATIONAL INC. The Seafood Industry: A Sea of Buyers Fishing for M&A Opportunities Across the Entire Value Chain.

Transcription

1 M&A INTERNATIONAL INC. The Seafood Industry: A Sea of Buyers Fishing for M&A Opportunities Across the Entire Value Chain

2 Table of Contents 1. Executive Summary... 3 A Review of M&A Activity (2010 H1 )... 3 Looking Ahead Seafood Industry Overview... 5 Global Seafood Demand and Supply Trends... 5 Global Trade... 7 Supply Systems... 8 Opportunities in the Seafood Industry... 8 The Key Trends and Drivers of M&A Activity M&A Analysis Analysis by Deal Volume Deal Analysis: M&A Targets Analysis by Industry Segment The Geographical Spread of Targeted Companies Deal Analysis: M&A Deal Makers Analysis by Buyer Type Analysis by Industry Value Chain Activity The Buyer s Perspective Analysis by Buyer Origin Fish Feed Analysis Case Study: The Takeover Battles in the Seafood Market during the First Half of Forward-looking Themes Commercial Fisheries Eyeing Aquaculture Fish Other Aquaculture Players Attracting the Interest of Salmon Producers Growing Demand for Frozen Seafood in North America Luring Buyers Conclusion and Outlook About M&A International Inc Main M&A International Inc. Food & Beverage Specialists Representative Transactions Transactions Closed by Members of M&A International Inc Major M&A Transactions Mentioned in this Report

3 Executive Summary 1 A Review of M&A Activity (2010 H1 ) Global seafood 1 consumption has grown on average by 2.5% during the last three years. The changing dietary habits of consumers and their demand for value-added/differentiated seafood products have contributed to the evolution of seafood companies business models and their strategies for growth in the sector. Food safety issues have increased the traceability requirements for all food ingredients, and industry players now increasingly need to show greater control over resources and create integration across large parts of the value chain. These factors, among others, have created substantial momentum in the mergers and acquisitions (M&A) activity of companies active in the global seafood industry. Recent M&A trends in the seafood industry exemplify the growing emphasis on a strong, integrated value chain. Increasing investor interest has been witnessed across the whole seafood value chain in recent years, and companies involved in processing and distribution activities were regularly targeted by potential buyers. Consolidation is a Must We expect that various segments within the seafood value chain will attract the attention of a range of investors, thus driving the fragmented seafood industry towards further growth and consolidation. Ruud van Hoek Head of M&A International Inc. s Food & Beverage Group Between 2010 and H1, we have registered 212 M&A deals within the seafood industry. While 2010 saw a good start to M&A activity with 63 completed deals, the registered deal activity in 2011 and failed to reach this level. However, with 36 deals announced in H1, M&A activity looks promising for the rest of the year. During 2010 H1, Europe led in terms of overall M&A activity, accounting for 112 deals, followed by Asia Pacific (41) and North America (23). The majority of the companies targeted in these transactions were active in the processing and distribution of seafood (54.7%), and over 26% of the transactions involved a target company active in the aquaculture sector. As seafood is a highly perishable commodity, reliable access to processing facilities enables seafood producers to have control over the final product and address traceability, hygiene and quality concerns. This has increased the importance of processing companies and has made them attractive target companies. Further, the growing strength of large retailers is driving the need for consolidation among seafood distributors. These distributors are 1 The terms seafood and fish have been used interchangeably in this report to include fish, shellfish, crustaceans and other marine animals. 3

4 Executive Summary 1 scaling up their businesses by acquiring processing as well as harvesting companies. Being vertically integrated improves their bargaining power with food retailers. Fish feed has witnessed a rising interest from investors, with the number of deals growing by a total of 40% during Two of the largest deals announced in within the seafood industry involve companies that manufacture fish feed. Forming 40 50% of aquaculture costs, fish feed has primarily thrived on the growing aquaculture segment. Looking Ahead We expect the seafood industry to maintain its steady growth in the near term. The continued rise in seafood demand is, however, being met with constrained supply and increasing feed costs, both of which have contributed to the recent hike in seafood prices. The forecast given by the Food and Agriculture Organization of the United Nations (FAO) in June suggests that the supply limitation of several important seafood species is likely to keep prices on the rise in the near future. The Organization for Economic Co-operation and Development Food and Agriculture Organization of the United Nations (OECD FAO) forecasts that prices 2 of traded seafood will increase by 2.7% during 2014 to $2,769.9 per tonne. This is likely to reach $2,933.0 per tonne in These rising prices are in turn expected to make the industry attractive to investors and increase M&A activity, with more and more companies seeking to grow in this market. Aquaculture production, which accounts for the majority of the seafood consumed, is one of the most attractive segments in the seafood industry from an M&A perspective. Acquisition opportunities also exist in the distribution segment which, positioned at the customer end of the supply chain, is also one of the most profitable components of the seafood industry. An uptick in M&A activity is also expected in the global fish feed market. This market has grown exponentially in the last few years and is estimated to have an annual growth rate of 11.7% from to Asian players like Pacific Andes International Holdings Ltd., Maruha Nichiro Holdings Inc. and Thai Union Frozen Products Public Co. Ltd. have been aggressively pursuing overseas acquisitions in order to be able to market their products worldwide. Several large companies within the seafood industry wish to have access to international resources and capabilities and are realizing the need for a global footprint. As a result, cross-border M&A activity within the seafood industry is likely to increase in the coming years. A striking example of this trend was seen in August with the acquisition of Copeinca ASA for $928.7mn by Pacific Andes International Holdings Ltd. via its subsidiary China Fishery Group Ltd., in a keenly contested M&A battle involving multiple global players. 2 Prices in nominal terms 4

5 Seafood Industry Overview 2 The global seafood industry comprises activities relating to the culturing, catching, preserving, processing, selling and distribution of fish or fishery products. The FAO estimates the industry to be worth about $400bn globally. Seafood is a significant contributor to the world s food supply and an important protein-providing food in terms of per capita consumption. Figure 1: Seafood value chain activities and key segments Activities Harvesting Processing Distribution Supermarkets Primary Secondary Wholesale Seafood stores On-trade / Horeca* Segments Commercial fishing Table 1: Global per capita food consumption by food category, (kg) Fish feed Aquaculture and fish hatcheries Seafood products Dairy products 67.9 Wheat 65.6 Rice 57.3 Seafood 19.2 Vegetable oils 18.7 Poultry meat 13.2 Pig meat 12.3 Beef and veal 6.6 Sheep meat 1.8 Source: OECD FAO Agricultural Outlook 2022 Note: kg denotes kilogram. Approximately 85% of the seafood produced globally is used for human consumption, while the remainder is converted into fishmeal and fish oil to feed fish and livestock. Figure 1 shows the seafood value chain, which comprises the following three primary activities: Harvesting: this involves the collection of seafood species through commercial fishing or aquaculture. Note: *Horeca stands for hotels, restaurants and cafes. Processing: Primary processing involves the shucking, cleaning, sorting, freezing, filleting and packing of fish and other seafood. Secondary processing involves the creation of processed seafood for ready meals or meal components. Distribution: this involves the marketing and distribution of fish or processed seafood products. The commercial fishing and aquaculture businesses are subject to large variations in seafood prices based on ever-changing supply and demand trends. Sustainable profitability in these businesses is largely achieved through cost control. Seafood demand continues to increase globally and significant population growth in countries such as China, India and Brazil is an important demand driver for the seafood industry. China is currently the largest producer, consumer and exporter of seafood, and also ranks among the top importers. Source: Evalueserve Analysis Global Seafood Demand and Supply Trends Global human consumption of seafood has increased steadily over the last few years. It grew from million tonnes in 2006 to million tonnes in, representing a CAGR of 2.8%. According to estimates by the OECD FAO, consumption will reach million tonnes by 2022, representing a CAGR of 1.7% during The major factors driving seafood demand are as follows: Diet diversification in industrialized countries due to people becoming more health-conscious. Increasing per capita consumption, rising income and changing diet preferences in developing countries. The development of modern distribution channels along with technological improvements in processing, packaging and storage of seafood products. Asian countries account for the largest share of per capita seafood consumption. 5

6 Seafood Industry Overview 2 As shown in Figure 2, the top six countries with the highest per capita consumption Figure 2: Largest seafood-consuming nations in terms of per capita consumption, are in Asia. Demand in these countries is largely met through local production, with the exception of Japan, which is one of the leading seafood-importing nations In, world per capita seafood consumption was 19.2 kg, and it is expected to rise to 20.6 kg by As per the OECD FAO outlook, Korea and Japan (with per capita 10 0 consumption of 61.5 kg and 55.3 kg, respectively, in 2022) are expected to remain the highest seafood-consuming nations. Brazil, China, India and Australia are forecast to demonstrate the highest growth in per capita consumption of seafood during Note: kg denotes kilogram. Source: OECD FAO Agricultural Outlook Figure 3: Largest seafood-producing regions, and 2022 Global seafood production is characterized by an increased share of aquaculture products compared with products from commer cial fishing. Total seafood production stood 60 at million tonnes in and posted 50 a CAGR of 2.2% during Korea Japan China dominated production in with a % share of the total global production. 10 China 35.6 Furthermore, China is expected to remain 0 VietNam 35.2 the largest seafood-producing nation with Philippines 34.0 production forecast to post a CAGR of 1.8% Indonesia 29.5 during New Zealand 27.7 Australia 27.6 Overall, seafood demand is likely to surpass Ghana 24.1 production in the future, primarily due to increasing human consumption. Russia 24.0 Chile 23.0 Source: OECD FAO Agricultural Outlook 2022 US China Canada IndiaEU Peru Indonesia EU Sub-Saharan Africa VietNam US Peru Japan Russia kg mn tonnes Korea 57.3 China 68.6 Japan 9.1 China 11.3 India Vietnam 8.5 Indonesia 10.0 Philippines 6.5 Indonesia EU 6.5 New Zealand Sub-Saharan Africa Australia 5.6 Ghana 6.5 Vietnam Russia US Chile 4.8 US Peru 6.2 Canada 4.4 Japan 4.7 EU 4.2 Peru 4.5 Russia 6

7 Seafood Industry Overview 2 Human seafood consumption is expected to see a CAGR of 1.7% during 2022, compared with a CAGR of 1.4% in global seafood production during the same period. The growing demand will lead to a rise in seafood prices. This highlights the growth potential of the industry and increases the attractiveness of the sector to strategic and financial investors. Global Trade Sustained demand, development in processing technologies, improved logistics and trade liberalization have all contributed to expanding the international seafood trade. China plays an important role in the global seafood trade. In, it accounted for over one-third of the global seafood production (through both commercial fishing and aquaculture). Apart from meeting its local demand for seafood, it also exports a significant quantity of its produce to the EU, the US and Japan. These three regions jointly accounted for an approximately 17.8% share of total seafood consumption in, and were also the largest importers of seafood. The EU accounted for 20.5% of total imports, followed by the US (13%) and Japan (10.5%) in. According to the OECD-FAO s Agricultural Outlook for 2022, the global seafood trade is expected to reach 45.1 million tonnes by 2022, from 37.2 million tonnes in. China is expected to maintain its leading position as the primary international exporter. The EU and the US are likely to continue being the largest seafood importers based on meeting their growing seafood consumption demands. mn tonnes Figure 4: Global seafood production and human consumption, Production Human consumption Other consumption Source: OECD FAO Agricultural Outlook 2022 Human Other Figure : Key exporting and importing regions consumption 71 of seafood, consumption 27 and Global exports, million tonnes Global imports, million tonnes China EU Thailand US EU Japan Vietnam China US Sub-Saharan Africa China Thailand EU Vietnam US Source: OECD FAO Agricultural Outlook EU US Japan CHina Africa

8 Seafood Industry Overview 2 Supply Systems Seafood is supplied primarily through two harvesting methods: commercial fishing and aquaculture. Global commercial fishing (wild catch) production has remained stable at around 90 million tonnes since 2001, while aquaculture production has increased by 5.8% annually over the 2006 period. It is projected by the OECD FAO that wild catch output will grow by only 0.6% between and 2022, while aquaculture is expected to grow at a rate of 2.5% during the same period. mn tonnes Figure 6: Global seafood production by supply system, Commercial fishing Aquaculture The Commercial Fishing Industry Commercial fishing depends principally on the natural availability of fish and is subject to different total allowable catch (TAC 3 ) quotas. Commercial fishing reached its peak in the 2000s. Since then, the industry has stagnated because of a growing quota regime and depleting sea species. To reap the long-term benefits of this industry, countries that actively pursue commercial fishing have implemented regulatory controls aimed at capacity rationalization. As part of these efforts, fishing fleets have been downsized and their TAC is strictly monitored to ensure that fish stocks are exploited at sustainable levels. The need for companies to increase their fishing quota under the TAC regime has led to the creation of large companies through the acquisition of smaller fisheries. A good example is Pacific Andes International Holdings Ltd, a leading fishing company quoted in Singapore which, in 2010, acquired the Peruvian fishing firm Deep Sea Fishing S.A.C. for $16.6mn through its subsidiary China Fishery Group Ltd. The acquisition helped the group increase its fishing quota for the Peruvian anchovy (one of the world s largest wild catch species) in the north and south 1990 of Peru. In, Pacific Andes International 2000 Holdings Ltd, via its subsidiary China Fishery Group Ltd., also acquired 2006 Copeinca ASA for $928.7mn, to increase its fishing quotas and additional fishmeal processing plants in strategic locations in Peru The Growing 2009 Aquaculture Sector: Bridging the Gap between Supply and Demand 2010 Aquaculture 2011 is the fastest growing seafoodproducing segment and complements the growing demand for seafood, which remains unmet by the limited sustainable harvest 2015 from wild catch. With a production of 66.2 million tonnes, it accounted for 42.2% of 2017 the total global seafood production in. As per 2020 OECD FAO estimates, aquaculture production will reach 85.1 million tonnes by Source: OECD FAO Agricultural Outlook 2022 Opportunities in the Seafood Industry Human Other consumption 84,7 consumption 13,1 The diverse 93,5and fragmented 32,4 seafood industry presents several opportunities for industry players. Companies can either 90,2 47,3 specialize in a single seafood species segment within 90,7 49,9 the value chain or adopt an integrated business model. 90,0 52,9 Further, 90,0 growth in international 55,7trade flows are a clear sign of the increasing globalization of the 88,9 seafood value chain, 59,9 wherein activities like processing are being outsourced to other 93,5 countries, primarily 62,7 in Asia, and then sold internationally. This presents opportunities 90,7 for companies to 66,2 diversify globally through acquisitions. 92,6 72,5 95,4 76,6 94,0 81,6 95,9 85,1 3 Total allowable catches (TAC) are catch limits set for a particular fishery, generally for a year or a fishing season, and are usually expressed in tonnes of live-weight equivalent, or in terms of the number of fish caught. 8

9 Seafood Industry Overview 2 Growth through Acquisition With limited growth expected through organic expansion, companies are looking for acquisitions to achieve their growth objectives. We expect industry consolidation to accelerate across seafood species and geographies, as well as within the industry value chain. Bjørn Campbell Pedersen Food & Beverage Specialist M&A International Inc. Norway The Key Trends and Drivers of M&A Activity M&A activity in the seafood industry has been fairly constant over the last three years. The growing demand has contributed to a general feeling of optimism within the seafood industry and this has had a positive impact on the sector s M&A activity. Seafood players are increasingly aware of the need to become vertically integrated, as this provides greater control over production costs as well as the opportunity to cater to the changing demands of consumers. It also helps to increase the traceability of the end product, a necessity given the greater emphasis on food safety nowadays. The underlying motive behind an acquisition depends on the positioning of the buyer and the target company in the industry value chain. Seafood producing companies have pursued acquisitions to achieve operational synergies, cost reductions and higher margins. On the other hand, companies that are at the consumer end of the value chain, such as distributors and retailers, have sought acquisitions to gain better control over supply. The main M&A trends and drivers in the seafood industry are: 1. The need for faster distribution and the search for higher margins are driving the acquisition of distribution companies by fish producers and processors. Fish producers are looking at ways to strengthen their distribution networks, given that fish is a perishable product and must therefore be transported quickly. These players aim to transition from production-driven companies to fully integrated seafood providers. Fish processing companies acquire distribution companies for the same reasons. 2. Fish processors are attracting interest from fish producers. Processing activities create a market-entry platform for fish producers through the creation of distinguished and value-added products. Further, processing activities are attractive to fish producers given that the by-products from fish processing plants can be used to prepare fish feed and thereby allow producers to gain better control over their raw material costs. 3. More control over the value chain is required to address the increasing need for seafood traceability. A presence in harvesting, processing and distribution activities allows companies to address traceability, legality and sustainability concerns with respect to seafood. 4. Industry players need to meet the changing demands of customers/retailers. There is a growing need for industry players to adapt to the changing demand for different seafood products. Having capabilities in both processing and distribution activities allows companies to introduce differentiated products, mostly under their own brands. Further, to meet the diverse and growing demand, large processors are setting up their own distribution networks to consolidate their position in a particular region, thus enabling geographic expansion and creating better bargaining power. 9

10 M&A Analysis 3 Analysis by Deal Volume Figure 7: Deals by volume, Q Q2 The global seafood industry witnessed steady M&A activity between 2010 and H1. During this period, over 164 buyers announced and completed 212 deals, of which 36 were announced in the first six months of. No. of Deals The encouraging deal activity in H1 indicates a promising M&A outlook. In addition, many key players in the industry have indicated that acquisitions are an integral part of their growth strategy. 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q Deal Analysis: M&A Targets The global seafood industry is still composed of a large number of small-scale players. As the industry is developing due to increasing seafood demand, these companies are growing larger and becoming increasingly integrated into the value chain. The key highlights of the last three years are as follows: With aquaculture expected to fuel future growth, the level of M&A activity in seafood harvesting activities has increased. Companies that process seafood and have strong distribution activities were the most sought-after acquisition targets. European companies were targeted the most, primarily by local buyers. Note 1: In Q1, six deals were announced, but completion was pending as of 30 June. Note 2: In Q2, 11 deals were announced, but completion was pending as of 30 June. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Deal Value 8 12 Key players Revenue ($mn)* Recent growth strategy Marine Harvest ASA High Liner Foods, Inc. (Canada) Q4 AquaChile S.A. (Chile) Table 2: Inorganic growth strategy of selected leading seafood companies , Source: Evalueserve Analysis Acquisitions aimed at growing the company into a leading global integrated protein producer and diversifying throughout the salmon production chain Consolidation to grow in the US food services market, especially frozen foods; plans to reach an EBITDA target of $150mn by 2015 through acquisitions and improvement in its supply chain Consolidation to increase stability in fish supply, mitigate the volatility of salmon price cycles and achieve better sanitary control in salmon production; it has earmarked $84mn in for acquisitions Note: *Represents data for FY. Q2 20 Source: Company Filings, Evalueserve Analysis 10

11 M&A Analysis 3 Analysis by Industry Segment M&A activity has been closely analyzed in the following four key segments: 1. Aquaculture and fish hatcheries 2. Commercial fishing Figure 8: Deal volume breakdown by industry segment (target), 2010 H1 9.4% (20 deals) 9.4% (20 deals) Processing and distribution Aquaculture and fish hatcheries Fish feed Commercial fishing 3. Processing and distribution 4 4. Fish feed As shown in Figure 8, processing and distribution companies were the most soughtafter acquisition targets, demonstrating increasing consolidation in this segment. The fish feed segment demonstrated a constant increase in M&A activity (discussed in detail on pages 17 19). It registered 20 deals and an overall share of 9.4% in deal volume during 2010 H1. Harvesting Activities: The Most Viable Fish can be harvested via aquaculture or fishing. Aquaculture meets almost 50% of demand for fish for human consumption, and posted a CAGR of 5.8% during These factors make aquaculture a future leader in the global seafood industry. Companies interested in aquaculture include those already engaged in harvesting activities and those operating in processing and/or distribution activities, which are looking for upstream integration to ensure steady fish supply. For example, in 2011, Pacific Sea Food Co., Inc., the largest seafood distributor in the US, acquired Coast Seafoods Co., one of the world s biggest oyster farmers, to gain a stronger position in shellfish production. M&A activity in the commercial fishing segment is driven by the need to increase the TAC quota in different regions and the potential to achieve economies of scale through the efficient use of large vessels. For instance, in, Oceana Group Ltd. announced the acquisition of Foodcorp 26.4% (56 deals) Date announced April June 2011 (Pty) Ltd. s fishing division for $45.6mn to increase its domestic fishing rights for pilchard and anchovy in South Africa. The Convergence of Processing and Distribution Activities The processing and distribution of fish and other seafood products is increasingly being combined, driven by the need to address the traceability concern of seafood products and better serve the seafood retailers. Accordingly, many seafood processors are setting 54.7% (116 deals) Table 3: Selection of transactions Source: Evalueserve Analysis Deal value 116Buyer 56 Target ($mn) SAS Savormer (France) (Processing) Pacific Andes International Holdings Ltd. (Hong Kong) (Processing) Youinou S.A. (France) (Processing & Distribution) Icelandic Holding France S.A.S. (France); Icelandic Holding Germany GmbH (Germany) (Processing & Distribution) 2.9 Source: Australian Energy Regulator (AER) 2011, Press up their own distribution networks. Combining processing and distribution helps these companies to better meet consumer/retailer demand and strengthen their bargaining position against seafood retailers. Two good examples of M&A transactions that demonstrate the growing trend to combine processing and distribution businesses are shown in Table 3. 4 The end product can be fresh, pasteurized, frozen or canned (processed) seafood 11

12 M&A Analysis 3 Additionally, possessing both processing and distribution capabilities enables companies to serve major retail chains directly, further providing them with the opportunity to introduce their own brands or supermarket owned brands (private labels). Private labels are gaining popularity as a relatively inexpensive alternative to branded products in tough times. The increasing variety of private-label seafood is attracting the interest of consumers who are looking to buy seafood but are not willing to pay a high price for it. The percentage of consumers who switched from branded seafood to private-label products increased from less than 4% in 2008 to over 30% in (source: Fish and Seafood Trends in the US by Packaged Facts). Private labels provide favorable margins to grocery chains and retailers. Banking on this trend, many leading seafood retailers are expanding their private-label product lines. In late, US-based Kroger, the fourth-largest retailer in the world, announced its plan to add more seafood products to its private-label product line. In, The Great Atlantic and Pacific Tea Company Inc., better known as A&P, launched a new fresh private-label seafood line as part of its Great Atlantic Seafood Market department. Value-added Processing Activities Deserve Investors Attention Figure 9: Deal volume breakdown by origin of target companies, 2010 H1 10.8% (23 deals) 17.0% (36 deals) 19.3% (41 deals) 52.8% (112 deals) Europe Asia Pacific North America Others Source: Evalueserve Analysis to a processing facility for fish spreads in Most of the European target companies France. This enhanced its range of valueadded products and increased its existing tion segments (56.3% of total deal volume), were active in the processing and distribu market presence in France. as shown in Figure 10. Many of the acquiring companies were already engaged in Additionally, companies engaged in processing activities are expanding their pack- looking to scale up their existing operations processing and/or distribution, and were aged food offerings. They are increasingly through acquisitions. For instance, in late managing co-packaging plants and creating, Brødrene Sperre AS, a processor private label products for large grocery retailers and restaurant chains. pelagic and white fish, acquired Vikomar and exporter of frozen, salted and dried AS, a fish processing company. Through the acquisition, it expanded its filleting operations into species such as herring and The Geographical Spread of Targeted Companies mackerel. Processing is an important catalyst for seafood companies and creates a market-entry platform for them through distinguished and value-added products. The increasing demand for ready-to-eat/cook fish products has further increased the importance of companies involved in processing activities. Alfesca hf., now known as Labeyrie Fine Foods plc, has expanded primarily through the acquisition of brands and processing facilities in major EU markets. Its most recent acquisition of Bakkavor Group hf. s unit in Chevilly in 2011 for $5.5mn, gave it access Europe attracted the lion s share of the announced deals based on the geographical origin of the targeted companies. A Preference for European Target Companies Europe led M&A activity during 2010 H1, with a total of 112 deals. Although deal activity slowed in (recording only 21 transactions), 15 deals were announced in H1, accounting for more than 40% of all seafood transactions worldwide during the same period. Almost one-third of the deals in Europe took place in the aquaculture segment. Norway and the UK are prominent salmonproducing countries and, as such, regional and global aquaculture players exhibited a growing interest in acquiring companies in these countries. For example, in December, Norway-based seafood company Marine Harvest acquired Lewis Salmon Ltd., a UK-based salmon farmer. With regard to the country of origin of the targeted seafood companies, the most prominent European players were Norway, Spain and the UK. Nearly 62.5% of all seafood acquisitions in 12

13 M&A Analysis 3 Europe from 2010 onwards took place in one of these three countries. Figure 10: Deal volume breakdown by industry segment (European targets), 2010 H1 Asia Pacific Targets Witnessing Moderate M&A Interest In Asia Pacific, 41 deals were announced, accounting for almost 20% of global deal volume in 2010 H1. The number of deals in the region almost doubled from six in 2011 to 11 in. In H1, the region registered 13 deals, showing strong growth in M&A activity. 32.1% (36 deals) 8.0% (9 deals) 3.6% (4 deals) 56.3% (63 deals) Processing and distribution Aquaculture and fish hatcheries Commercial fishing Fish feed During the last three years, target companies with processing and/or distribution capabilities in the seafood chain were the most sought-after, with 15 of the 30 transactions in this region falling within this segment. Because of their lower cost base, processors in Asian Pacific countries import frozen seafood products for further processing and export them as value-added products. Such companies are highly attractive to add to the existing value chain of large seafood companies. Additionally, deal activity in Asia Pacific was led by increasing buyer interest in seafood companies in Japan, which accounted for over 36.5% of Asia Pacific deals, followed by Vietnam at around 17.1% of all transactions. Consolidating the Value Chain in North America Deal volume in North America was lower than in other regions, with only 23 transactions in the seafood sector during 2010 H1. By country, the US accounted for over 80% of all deals in North America. Almost 80% of the acquisitions concerned companies active in seafood processing and distribution. Source: Evalueserve Analysis Consolidation in Retail In the US, 10 operators control around % of retail grocery sales. Such consolidated players 9 prefer centralized 4 buying and streamlined procurement. Hence, seafood companies in North America should be strong in both processing and distribution. For example, in March, US-based Elevation Brands, LLC (formerly Ian s Natural Foods, Inc), a producer and marketer of allergy-friendly food products acquired Blue Horizon Foods Inc., a US-based company engaged in manufacturing value-added frozen seafood products. The acquisition will provide synergies for both companies in all their operations, including manufacturing, sales and marketing. Consequently, The search for processing and distribution companies comes in the wake of increased consolidation among grocery the combined operations will be better able to serve natural and conventional grocery stores in the US market. retailers, wholesalers and processors in North America. In Canada, five major food retailers, including Sobeys, Metro and Loblaws, control over 72% of the retail food sales market. Howard Johnson Food & Beverage Specialist M&A International Inc. Canada 13

14 M&A Analysis 3 Deal Analysis: M&A Deal Makers Figure 11: Type of buyer (breakdown by deal volume), 2010 H1 The key characteristics witnessed between 2010 and H1 are as follows: Around 81% of the deals were announced by strategic buyers, hence companies which consider seafood as their core activity. 6.6% (14 deals) 12.7% (27 deals) Strategic buyers Financial buyers Other buyers Most of the buying companies are of European origin (52.3%), followed by the Asian Pacific (20.7%) and North American (12.4%) regions. 80.7% (171 deals) Analysis by Buyer Type Note: Other buyers include individuals and undisclosed buyers. Source: Evalueserve Analysis Strategic vs. Financial Buyers Strategic buyers, primarily comprising seafood processing and distribution companies, represented the largest share of transactions by volume (80.7% or 171 deals) between 2010 and H1, as shown in Figure 11. Financial buyers, comprising private equity groups (PEGs), investment funds, etc., invested in fewer deals and were responsible for 14 transactions (6.6% or 14 deals) during 2010 H1. Table 4 shows some of the deals by financial buyers in the industry. Date announced June June 171 Table 4: Selection 14 of transactions 27 Buyer Target Altor Equity Partners (Sweden); EWOS AS Bain Capital Private Equity (US) Aker ASA (OB:AKER); Havfisk ASA Converto Capital (OB:HFISK) Management AS Deal value ($mn) 1, September 2010 Carson Private Capital (US); Lion Capital LLP (UK) Stinson Seafood 2001 Inc. and Clover Leaf Seafood B.V. (US) Source: Evalueserve Analysis 14

15 M&A Analysis 3 Figure 12: Presence of key players across activities in the seafood industry value chain Production Processing Distribution Austevoll Seafood ASA Marine Harvest ASA Trident Seafoods Corp. Aquachile S.A. Bakkarfrost P/F SalMar Farming AS Grieg Seafood ASA Analysis by Industry Value Chain Activity The Buyer s Perspective High Liner Foods, Inc. Thai Union Frozen Products Co., Ltd. High Presence Low Presence No Presence Vertical Integration within the Seafood Value Chain Upstream and Downstream Note: The companies shown above are in no particular order. Source: Evalueserve Analysis Seafood companies are increasingly becoming vertically integrated players to gain more control over the value chain and meet the changing demands of customers and retailers. During 2010 H1, companies engaged in processing activities showed keen interest in the high profitability and growth of some aquaculture production activities, such as salmon and shrimp farming. Nearly one-fifth of the transactions announced by companies engaged in seafood processing and distribution were made to expand their upstream presence through the acquisition of companies involved in harvesting. Such upstream consolidation was stimulated by the need to control the quality of fish supply, soothe raw material price fluctuations and address concerns regarding the traceability of seafood products. Date announced October 2011 June 2011 September 2010 Table 5: Selection of transactions Buyer Target Deal value ($mn) Pacific Sea Food Co., Inc. Coast Seafoods Co. (US) (US) (Processing & (Harvesting) Distribution) Seafrost S.A.C. Marinazul S.A. (Peru) (Peru) (Processing & (Harvesting) Distribution) 2.5 Morpol S.A. Marine Farms ASA (Poland) (Processing & (Harvesting) Distribution) Source: Evalueserve Analysis The deals that exemplify the investments made by processing companies in harvesting activities are listed in table 5. 15

16 M&A Analysis 3 The period also saw downstream integration in the supply chain. Given the perishability of fish and seafood products, fish supply instability and price volatility, many producers acquired companies involved in processing and/or distribution activities to strengthen their distribution networks. Such companies aimed to transition from being production-driven farming companies to fully integrated seafood providers. Moreover, companies engaged in processing activities acquired distribution companies to gain better access to the market and achieve higher margins. Deals exemplifying such downstream integration are listed in table 6. Date announced March January September 2010 Table 6: Selection of transactions Buyer Target Australis Seafoods Mainstream Chile S.A., S.A. Fitz Roy Plant (Chile) (Chile) (Harvesting) (Processing) Baiyang Aquatic Hainan Jiadexin Foodstuff Group Inc. Co., Ltd. (China) (China) (Harvesting) (Processing & Distribution) Shin Tokyo International Kyokuyo Co., Ltd. Inc. (Japan) (Japan) (Processing) (Processing & Distribution) Deal value ($mn) Analysis by Buyer Origin March 2010 Norway Pelagic ASA (Harvesting) Brødr Myhre AS (Processing) 4.1 The expansion of service offerings to compete against larger peers has been a common motivation for a number of regional transactions. As such, a fairly low level of cross-border M&A activity was witnessed. Source: Evalueserve Analysis Figure 13: Deal volume breakdown by buyer origin, 2010 H1 The European Dominance of Global M&A Investments By buyer origin, Europe dominated sector activity and reported 101 (52.3%) transactions between 2010 and H1, as shown in Figure 13. These deals were primarily local, with 94 deals (93.1%) taking place within the European region. During 2010 H1, one notable transaction in the region was the acquisition of Luis Calvo Sanz, S.A. by the Bolton Group in for $165.2mn. 12.4% (24 deals) 20.7% (40 deals) 14.5% (28 deals) 52.3% (101 deals) Europe Asia Pacific North America Others Norway and the UK represented more than 40% of the European buyers during 2010 H1. They are among the largest salmon-producing countries, with a combined global market share of about 71.5% in 2011 (source: Pareto Securities Research). Additionally, these countries, along with Spain, France, Italy and Greece, have large coastal populations that are significant Note: Based on 180 deals for which buyer origin information was available. Source: Evalueserve Analysis

17 M&A Analysis 3 consumers of seafood. Together, they constituted 62.4% of European buyers. Figure 14: Deals by volume (fish feed segment), 2010 H1 The Growing Appetite for Seafood M&A in Asia Pacific European buyers were followed by Asia Pacific buyers with 40 investments, representing a 20.7% share of deal volume between 2010 and H1. In 2011, Asia Pacific buyers made eight acquisitions, while deal activity in the first half of surpassed this number to reach 13. This indicates that M&A activity by Asia Pacific buyers is set to grow further in H1 Most Asia Pacific investments were in the seafood processing and distribution segment, which together accounted for 55% of deal volume in the region. This was partly driven by rising disposable income in the developing Asian nations, which has led to an increasing demand for premium seafood products. Japan, the world s third largest seafood importer (with a 10.5% share in global seafood imports in ), was the most active Asia Pacific buyer, accounting for nearly one-third of total deal volume in the region. A notable transaction in Japan was the acquisition for $22.7mn of Kaneko Sangyo Co., Ltd., a provider of fish farming, marine products and cold storage management services, by the publicly listed company Nippon Suisan Kaisha Ltd. in. Japan s acquisitions can be attributed to its need to source seafood, an essential component of the Japanese diet, given the disastrous effect of recent natural calamities on its own seafood industry. The Japanese tsunami wiped out over 90% of the fishing industry in the worst affected areas, while the Fukushima nuclear leaks have contaminated the seawater, and this may take generations to clean. Note: The information is based on 20 deals with targets engaged in the fish feed business. Source: Evalueserve Analysis Favorable M&A Trends in North America 2010 Fish Feed Analysis 2011 H1 Average Deal During 2010 H1, North American Driven by the growth of aquaculture, the Value buyers invested in 24 deals, representing fish feed segment has shown tremendous 12.4% of global deal volume. About 66.7% of North American buyers invested growth and is becoming an increasingly popular segment for M&A activity. in companies engaged in the processing and distribution of seafood products. For instance, in, Latteno Food Corp. The Fish Feed Segment: Receiving Nourishment from Growing Aquaculture Activity acquired Mekonza Corp., which imports, processes and supplies fresh and frozen seafood products. Fish feed is a major expenditure for fish producers engaged in aquaculture, accounting for 40 50% of the total fish production The US seafood industry looks strong, and its government is encouraging the consumption of fish as a source of high-quality, low-fat protein. Additionally, the consolidation of retail chains in North American markets will affect the rest of the supply chain and lead the fragmented distribution network, especially in the US, to move towards consolidation. cost. As a result, access to fish feed is a key consideration for better economies of scale. The segment is dominated by a small number of large global producers and influenced by growing global demand. Therefore, the price of fish feed is highly susceptible to fluctuations. Fish feed is also largely dependent on small pelagics from commercial fishing. The changing TAC quota, as well as growing demand from the aquaculture sector, contributes to variations in fish feed prices. These price fluctuations 17

18 M&A Analysis 3 Figure 15: Fish feed segment activities of buyers, 2010 H1 10.0% (2 deals) Animal feed Seafood Other buyers 30.0% (6 deals) 60.0% (12 deals) Note: The information is based on 20 deals with targets engaged in the fish feed business. Source: Evalueserve Analysis Date announced March Table 7: Selection of transactions Buyer Target Nutreco N.V. RaçSes Fri-Ribe S.A. (The Netherlands) (Brazil) Deal value ($mn) 39.1 November 2011 Cargill Vietnam Ltd. (Vietnam) Higashimaru Vietnam Co., Ltd., Shrimp Feed Mill (Vietnam) July 2010 Nutreco N.V. (The Netherlands) Tomboy Aquafeed JSC (Vietnam) 13.5 Source: Evalueserve Analysis have a major impact on the profitability of aquaculture companies. As a result, these firms are investing in fish feed companies to achieve synergies in feed procurement and production costs. Who Is Buying the Fish Feed Producers? Animal feed and seafood companies, among others, invested in 20 deals announced between 2010 and H1, as shown in Figure 15. Large animal feed companies, which produce a variety of animal feed (and pet food), are often also active within the fish feed segment because they frequently diversify into fish feed production to capitalize on the promising growth outlook for the fish feed industry. They accounted for two-thirds of total deals in the fish feed segment during 2010 H1. These large animal feed companies are able to attain synergies, given the similarity between the distribution systems within all feed industries. Fish feed acquisitions made by a few leading animal feed players are presented in table 7. Notably, around 30% of acquisitions within the fish feed segment were made by seafood companies. Firm demand for carnivorous fish and shrimp continues to support their increased farming and, thereby, their fish feed production. In addition, the fish feed business is attractive for fish processing companies as the by-products from fish processing plants can be used to prepare fish feed. 18

19 M&A Analysis 3 Table 8 shows a selection of fish feed acquisitions made by seafood companies. Promising Future Date announced June Table 8: Selection of transactions Buyer Target China Fishery Group Ltd. (Hong Kong) Copeinca ASA (Harvesting, Processing & Distribution) Deal value ($mn) Dong Thap Seafood September Hung Vuong Corp. (Vietnam) (Processing & Distribution) Import Export and Processing JSC, Viet Dan Aquatic Food Production Plant (Vietnam) 3.5 P/F Bakkafrost With the aquaculture sector showing significant growth, the global fish feed business is likely to grow in tandem with it, and thereby M&A activity in the fish feed segment looks promising in the coming years. April 2011 (Denmark) (Harvesting, Processing & Distribution) P/F Havsbrún (Denmark) Source: Evalueserve Analysis Florian von Alten Food & Beverage Specialist M&A International Inc. Germany 19

20 M&A Analysis 3 Case Study: The takeover battles in the seafood industry during the first half of Marine Harvest ASA (Marine Harvest), a leading seafood company and one of the largest salmon producers, announced that it would acquire Cermaq ASA (Cermaq), a salmon farmer and producer of fish feed. The acquisition would provide Marine Harvest with access to Cermaq s fish feed division, EWOS, thus enabling Marine Harvest to become a fully integrated aquaculture company. Around the same time, Cermaq acquired a 50.7% share in a Peruvian fish meal and fish oil producer, Copeinca ASA (Copeinca), and made a further offer to acquire its remaining shares. The acquisition of Copeinca would secure Cermaq s access to essential marine ingredients for its salmon feed production. Marine Harvest set a condition to its bid that Cermaq abandon its ongoing attempt to acquire Copeinca. Subject to this condition being met, Marine Harvest would proceed with Cermaq s acquisition. Marine Harvest s lack of interest in Copeinca was due to the latter s fisheries and raw materials business, which was not the group s focus area. It was instead focused on growing its feed and farming business through the Cermaq acquisition. With intervention from the Norwegian government, which held a 43.5% stake in Cermaq, and on the grounds that Marine Harvest s offer was significantly below the underlying value of the company s operations, the offer was rejected by Cermaq. However, under pressure from its minority shareholders, Cermaq sold off its EWOS division (thus adopting a crown jewel strategy) to Altor Equity Partners and Bain Capital Private Equity, and sold its present stake in Copeinca to China Fishery Group Ltd. In a parallel transaction, China Fishery Group Ltd. (China Fishery), a harvester, processor and distributor of a range of seafood products, announced the acquisition of Copeinca. This acquisition will be transformational for China Fishery, making it Peru s largest producer, as well as one of the world s largest producers of fishmeal and fish oil. The transaction closed in August. The timeline of the companies acquisition activities Offer to acquire Offer to acquire Offer to acquire Marine Harvest ASA Cermaq ASA Copeinca ASA China Fishery Group Ltd. Offer rejected Offer rejected Offer accepted 30 April: Marine Harvest had a 4.7% share in Cermaq. It made a new offer to acquire the remaining 95.3% interest in Cermaq at NOK104.0 ($17.50) per share. The offer was subject to Cermaq shareholders deciding not to carry out the offer to acquire Copeinca. The Marine Harvest offer was considered hostile by Cermaq. 21 May: Marine Harvest proposed to increase the offer price to NOK107.0 ($18.01) per share, while Cermaq decided to abandon its acquisition of Copeinca. 13 June: The Board of Cermaq rejected Marine Harvest s offer. 17 June: Cermaq sold its fish feed division, EWOS, to Altor Equity Partners and Bain Capital Private Equity, for a total enterprise value of NOK6.2bn ($1.04bn). 24 June: The Norwegian government raised its stake in Cermaq to 53.7% through a reverse Dutch auction in order to have more control and fend off Marine Harvest s offer to acquire. 5 April: Cermaq, through private placement and a further acquisition of treasury shares at a price of NOK59.70 ($10.05) per share, acquired 50.7% of Copeinca s share capital. 29 April: Cermaq launched a voluntary offer to acquire the remaining shares in Copeinca at an offer price of NOK59.70 ($10.05) per share. 10 May: Cermaq extended the acceptance period to 23 May. 23 May: Cermaq announced that the voluntary offer on all shares in Copeinca would not be completed and thus, the offer to acquire Copeinca was withdrawn. 24 June: Cermaq entered an agreement to sell its existing stake in Copeinca to China Fishery for about NOK928mn ($156mn). 13 March: China Fishery made a voluntary cash offer to acquire Copeinca at an offer price of NOK53.85 ($9.06) per share. 11 April: China Fishery announced an amended offer, increasing the offer price to NOK59.70 ($10.05) per share, in order to match the offer price from Cermaq. 16 July: China Fishery announced a new offer price of NOK68.17 ($11.47) per share of Copeinca. 8 August: China Fishery completed the acquisition of Copeinca to own 99.07% of the shares and votes in Copeinca. Note: Exchange rate of NOK to USD ( ) as of 21 August Source: Company filings, news articles, Evalueserve Analysis 20

21 Forward-looking Themes 4 Commercial Fisheries Eyeing Aquaculture Fish Aquaculture has an edge over commercial fishing as, to some extent, it can control the quantity and quality of fish produced. It can therefore provide a stable supply of any fish. Commercial fishing, on the other hand, is subject to the type and quantity of the catch, thus providing an unstable fish supply. Moreover, with stagnant growth in commercial fishing production, the leading cashrich commercial fishing players (especially those dealing with small pelagic fish and whitefish) may move towards aquaculture activities, such as high-value salmon farming. The aquaculture sector is expected to account for the majority of growth in fish production and has therefore been deemed a high-growth sector. Also, despite the differences between the two fish production practices, synergies can be attained in the marketing and distribution of the end product. Additionally, both practices have their limitations as commercial fishing is constrained by TAC quotas and aquaculture is limited by disease outbreaks. However, investment in both businesses can diversify the risk for fish producers. It can also mitigate the limitations across fish production practices and provide a steady fish supply. Other Aquaculture Players Attracting the Interest of Salmon Producers Salmon farming is one of the high-growth and high-value sectors within the aquaculture industry. According to a Gabelli & Company report published in July, it is a $10.0bn sector compared with aquaculture, which is a $130bn industry. The majority of the companies in the sector are public and located in the mature economies of Norway, the UK, Canada and Chile. Access to investment capital in these countries is strong, which complements the high growth of seafood companies there. With a sound capital Frozen gains Popularity The current economic climate and the continuous progress in food processing have both had an impact in the increase of frozen fish consumption. Even in countries, such as Italy, where demand was traditionally and emotionally linked to fresh products, the frozen food category is gaining popularity and rising in retail sales, favoring those players able to build a consistent offer and a brand reputation among customers. This trend anticipates a fervid interest of financial sponsors willing to scout for deals with the aim of picking up the winner in their respective countries. Nino Dell Arte Food & Beverage Specialist M&A International Inc. Italy structure, the leading salmon producers are likely to invest in other aquaculture subsectors such as the farming of mussels, sea bass and sea bream. The diversification will also enable salmon producers to mitigate the effect of salmon cycles while allowing them to achieve important synergies in feed procurement, marketing and distribution. One such example of the diversification of salmon producers into other aquaculture activities involves Cooke Aquaculture Inc., a Canadian salmon farmer. In February, the company acquired the farming assets of Doramenor Acuicultura S.L., a Spanish producer of sea bass and sea bream aquaculture. This trend is expected to create ripples in the fish feed industry. Companies providing salmon feed are diversifying to include other fish feed species such as pangasius, tilapia and tambaqui feed. The acquisition by Cermaq ASA (operating in salmon farming and salmon feed) of EWOS Vietnam JSC, which caters to the pangasius feed sector, exemplifies this trend. Further, Skretting, the fish feed segment of Nutreco, a quoted animal feed company from the Netherlands, plans to add a new portfolio in shrimp, tilapia and tambaqui feed through acquisitions. It will subsequently expand its range of seafood offerings across the globe. Growing Demand for Frozen Seafood in North America Luring Buyers Frozen seafood is an important market in the US, accounting for around one-third of sales value (as per a 2010 report by the University of Arkansas) in the major seafood categories. With a decline in dining-out habits, the demand for both private and branded-label frozen seafood has increased. The market has thus attracted interest from seafood companies. A number of companies have recently shown a marked interest in branded frozen seafood labels. A few such developments are discussed below. In late, Thai Union Frozen Products announced plans to acquire frozen seafood companies in the US and the EU. The company s brand in the US, Chicken of the Sea, accounts for about 36% of its revenue. During early, High Liner Foods announced its plans to become the leader in value-added seafood in North America by making acquisitions in the branded frozen retail sector. The company has been aggressively searching for the right target. According to Intrafish, a leading media publication for the seafood industry, certain business units of Pinnacle Foods Inc. and Mrs. Paul s could be strategic fits for High Liner Foods. 21

22 Conclusions and Outlook 5 Further, Pacific Andes International Holdings Ltd., through its US subsidiary, National Fish & Seafood, is rumored to be looking for acquisition targets in the frozen seafood industry. The US frozen seafood market is expected to remain competitive, driving companies to grow, primarily through acquisitions, to maintain their market share. The global seafood industry has been growing at a marginal but constant pace and, according to Global Industry Analysts, Inc., is expected to expand from a $400bn industry to about $430bn by Comprising companies of varying sizes with different business models, the industry is fragmented and diverse. The industry s growth prospects are fundamentally strong and are dependent on the following factors: steady growth in global seafood consumption due to increasing health consciousness and rising living standards across geographies, alongside a growing population regulated wild catch supply, set at a sustainable and stable level of about million metric tonnes per annum for the past 20 years through aquaculture, extension of processing capabilities to create more value-added products, and improvement of the distribution network. Over the past three years, M&A activity in the seafood industry has been steady worldwide. However, it picked up pace in the first half of, setting the stage for an upbeat outlook for the rest of the year. This is largely because companies have continued to make acquisitions across the value chain to reap the benefits of vertical integration. The integration of fish harvesting, processing and/or distribution activities into a single diversified entity is viewed by the seafood industry as an optimal business model. This is reflected in the ongoing consolidation in the industry across the value chain. The integrated business model is resilient to macroeconomic factors and capitalizes on the growth potential of the seafood industry. Furthermore, the diverse nature of the seafood industry is creating opportunities for seafood companies to take new strategic directions, such as: specialization in single seafood species/ value chain activities Consolidation and Growth The wave of consolidation in the seafood industry is expected to continue and deal activity is set to accelerate. The growth in seafood consumption is likely to increase seafood prices in the future, which will in turn act as an incentive for seafood companies to scale up their operations across the value chain. Ruud van Hoek Head of M&A International Inc. s Food & Beverage Group aquaculture to account for the majority of growth in future fish production. This is also driving the increase in demand for fish feed change in consumer tastes/preferences influencing the demand for processed fish products To cater to the growing seafood demand, companies are finding inorganic ways to fuel their large-scale expansion globally and strengthen the supply base. These methods include growth in fish production, especially regional/global diversification adoption of an integrated business model This diversified business strategy is also tempting financial investors who had previously only invested in aquaculture due to its cyclicality, biological assets and frequent changes in the business environment. Financial investments can act as a catalyst to fuel further consolidation within the seafood industry. 22

23 6 THE SEAFOOD INDUSTRY: About M&A International Inc. M&A International Inc. s members actively represent buyers and sellers in the food industry as well as those seeking to raise private equity and debt capital. We possess significant Food & Beverage sector expertise, industry relationships and experience in successfully executing complex transactions on behalf of our clients. Ruud van Hoek Head of M&A International Inc. s Food & Beverage Group ruud.vanhoek@mergers.net 23

24 Main M&A International Inc. Food & Beverage Specialists 7 Country Contact Americas Brazil (São Paulo) Gianni Casanova gianni.casanova@mergers.net Canada (Montreal) Ross Smith ross.smith@mergers.net Canada (Toronto) Howard Johnson howard.johnson@mergers.net Chile (Santiago) Arnoldo Brethauer arnoldo.brethauer@mergers.net Colombia (Bogotá) Francisco Aduriz francisco.aduriz@mergers.net Mexico (Mexico City) Arseny Lepiavka arseny.lepiavka@mergers.net United States (Atlanta) James S. Grien james.grien@mergers.net United States (Boston) Jerome S. Romano jerome.romano@mergers.net United States (Chicago) Arthur J. Lyman arthur.lyman@mergers.net United States (Cleveland) David D. Dunstan david.dunstan@mergers.net United States (Jacksonville) Doug Kravet doug.kravet@mergers.net United States (New York) W. Gregory Robertson gregory.robertson@mergers.net United States (Seattle) Thomas Elzey thomas.elzey@mergers.net Europe Belgium (Brussels) Erik Verkest erik.verkest@mergers.net Bulgaria (Sofia) Rossen Ivanov rossen.ivanov@mergers.net Czech Republic (Prague) Ondrej Berka ondrej.berka@mergers.net Denmark (Copenhagen) Frederik Aakard frederik.aakard@mergers.net Estonia (Tallinn) Lauri Isotamm lauri.isotamm@mergers.net Finland (Helsinki) Patrik Hertsberg patrik.hertsberg@mergers.net France (Paris) Philippe Hermant philippe.hermant@mergers.net Germany (Hamburg) Florian von Alten florian.alten@mergers.net Ireland (Dublin) Raymond Donegan raymond.donegan@mergers.net Italy (Milan) Nino Dell'Arte nino.dellarte@mergers.net Lithuania (Vilnius) Karolis Pocius karolis.pocius@mergers.net Netherlands (Amsterdam) Ruud van Hoek ruud.vanhoek@mergers.net Norway (Oslo) Bjørn Campbell Pedersen bjorn.campbellpedersen@mergers.net Poland (Warsaw) Maciej Szalaj maciej.szalaj@mergers.net Slovakia (Bratislava) Miroslav Hilčík miroslav.hilcik@mergers.net Slovenia (Ljubljana) Jure Jelerčič jure.jelercic@mergers.net Spain (Madrid) Gustavo Casanova gustavo.casanova@mergers.net Sweden (Gothenburg) Sven-Åke Lewin svenake.lewin@mergers.net Switzerland (Berne) Peter M. Binder peter.binder@mergers.net United Kingdom (London) Brian Livingston brian.livingston@mergers.net United Kingdom (London) Jonathan Buxton jonathan.buxton@mergers.net Africa / Asia Pacific / Middle East Australia (Sydney) Peter Fraser peter.fraser@mergers.net China (Hong Kong) Adrian Bradbury adrian.bradbury@mergers.net India (Mumbai) Sameer Karulkar sameer.karulkar@mergers.net Israel (Tel Aviv) Tomer Segev tomer.segev@mergers.net Japan (Tokyo) Takashi Yune takashi.yune@mergers.net Singapore (Singapore) Alistair Burgoyne alistair.burgoyne@mergers.net South Africa (Johannesburg) Yaron Zimbler yaron.zimbler@mergers.net 24

25 8 THE SEAFOOD INDUSTRY: Representative Transactions Transactions Closed by Members of M&A International Inc. Seafood Holdings Limited has been acquired by repurchased shares of OME s common stock from Shareholder valuation Retail Distributors Advisor to seller United Kingdom/South Africa Other Industrials and Capital Goods Advisor to buyer United States Food and Beverages Valuation Canada has been acquired by has been acquired by has been acquired by Foods and Beverages Advisor to seller Norway/Finland Food and Beverages Advisor to seller Germany/Poland Food and Beverages Advisor to seller Norway Having closed over 92 transactions in the past five years, of which 27 were cross-border, M&A International s Food & Beverage Group has the experience and expertise to handle a wide range of assignments. Our professionals routinely work in teams for both domestic and cross-border transactions. 25