Could Blackstone go fishing for deals with new $22bn-plus fund?

The Blackstone Group has just raised more than $22 billion from investors for its latest private equity fund. With this mountain of money could the US-based buyout giant look at seafood mergers and acquisitions (M&A)?

Given the increased private equity appetite for seafood M&A, maybe, according to Undercurrent News sources. Blackstone — the world’s largest asset manager with $472bn on its books — completed the first close of its eighth private equity in March, according to Bloomberg News. However, Blackstone has not yet set a limit on the investment pool, which it ultimately expects to eclipse the $24.56bn fund record set by fellow buyout behemoth Apollo Global Management in 2017, which has $249bn under management, reported Bloomberg.

Blackstone has been eyeing deals in the sector before. Back in 2015, Undercurrent revealed Blackstone made a bid for the Peruvian anchovy assets of China Fishery Group, along with industry players Parlevliet & Van der Plas (P&P) and Samherji.

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Nine big seafood M&A moves to watch for in 2019

By Jason Huffman, Tom Seaman and Jason Smith

The seafood industry has a fever and the only thing that will cool it down in 2019 is more consolidation.

To say there were a lot of mergers and acquisitions in 2018 would be an understatement. Undercurrent News has identified 127 deals, up from 117 in 2017 and 102 in 2016. The fourth quarter of 2018 alone saw 42 deals, the most since we started tracking in January 2015. The joint second-highest quarter for deals was Q3 of last year when we recorded 34, the same as in Q4 of 2017.

These deals include quite a few big ones in multiple sectors, from salmon aquaculture in Chile to fishing firms, processors, wholesalers and exporters in Europe, the US, Canada, and Asia. But the global M&A party is not nearly over based on the conditions, as suggested by Ignacio Kleiman, a managing partner at Antarctica Advisors, in Miami, Florida, in an earlier interview.

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M&A Advisor: More US firms need to be looking to secure resources overseas

Undercurrent News – August 22, 2018

North American companies need to be more aggressively seeking access to raw material resources overseas, believes Birgir Brynjolfsson of Antarctica Advisors.

Speaking to Undercurrent News, Brynjolfsson – who worked as the exclusive advisor to Mitsui & Co on its March 2018 deal for Mark Foods – noted there is a perception that US companies in the seafood sector are interested in looking overseas for expansion.

“But what we’ve seen is that there are so many opportunities within North America that there is no need for the companies to start looking overseas.”

“We get a lot of inbound communications from advisors in Asia and Latin America asking ‘hey, we’ve got this opportunity, are you guys interested?’ And our recommendation is that the North American companies have not been aggressively going abroad acquiring the right resources.”

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Sources: Iberconsa, Pescanova an ‘ideal match’; management would prefer PE

The likely upcoming sale process for Portobello Capital’s stake in Grupo Iberica de Congelados (Ibercosa) will attract a lot of trade and private equity interest, with the Madrid, Spain-based  private equity (PE) investor in a strong position, said one banker.

According to one source, Gorjan Nikolik of Rabobank, investors should look at unifying Ibercosa and Grupo Nueva Pescanova. However, Nikolik acknowledged the issues with a move like this. Other sources said this is not likely to be a move the management of Ibercosa is likely to want to see, at least in the short-term.

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Global seafood players need to buy US market access, says advisor on Mitsui investment in Mark Foods

The investment from Mitsui & Co in Mark Foods shows large, global groups are realizing acquiring or investing in a US distributors is the fastest way to get access to the market, said the advisor to the giant Japanese conglomerate on the deal.

“Global companies are realizing it takes a lifetime to build a market position in the US. The only way to achieve a strong position in the US market is through partnership or an acquisition of a well-established company,” Birgir Brynjolfsson of Antarctica Advisors, who worked as the exclusive advisor to Mitsui on the deal, told Undercurrent News.

Mitsui, which has also has minority stakes in the salmon farming arm of Chile’s Multiexport Foods and Vietnamese shrimp supplier Minh Phu Seafood, already has a US operation involved in the food sector.

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Is now a good time to sell your company?

US seafood companies may have a window.

President Trump’s increasingly tough stance on trade is worrying many US seafood industry players, as it does not necessarily consider that some 85-90 percent of the seafood we consume in this country is imported. Increasing barriers to imports many result in higher raw material costs, lower profitability, a slowdown in revenue growth and, consequently, a potential general decrease in Enterprise Values (EV) for those companies exposed to these possible regulatory challenges.

Read the full article here.

Source: IntraFish

Los fondos de inversión revolucionan la industria pesquera gallega

Son negocios en expansión con generación constante de caja, de ahí que sean atractivos para este tipo de sociedades.

La comercialización de productos del mar está al alza en Europa (por la recuperación del consumo tras la crisis), Estados Unidos (con nuevos formatos) y Asia (por una creciente clase media en China). En Galicia es una industria muy atomizada pese a que las Rías Baixas concentran la mayor capacidad productiva de la eurozona. Aún así, solo Nueva Pescanova figuraba entre las top 100 del mundo, un ránking al que ha entrado Ibérica de Congelados (Iberconsa) tras la compra por esta última de la argentina pesquera Santa Cruz. Ninguna de ellas está en manos de industriales de la pesca; la primera es propiedad de la banca acreedora, que ya ha iniciado contactos para desinvertir, y la segunda está en manos (en un 55%) del fondo Portobello Capital.

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Boston panelists: Lots of M&A talk but valuation ‘disconnect’ stops deals from getting done

BOSTON, Massachusetts, US — There’s a lot of factors in the seafood sector right now that would suggest the pace of mergers and acquisitions (M&A) is destined to heat up soon.

But for all of the talk, the pace of US seafood dealmaking slowed in 2017, at least for ‘announced’ deals, according to a recent presentation made by bankers and deal advisors speaking at an M&A panel at the Boston seafood show.

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Antarctica Advisors Acts as Exclusive Investment Banking Advisor to Mitsui & Co (U.S.A.) in a Strategic Partnership Transaction with Mark Foods

March 16, 2018 – Antarctica Advisors LLC, the leading Seafood Industry-focused M&A advisory firm, acted as the exclusive investment banking advisor to Mitsui & Co (U.S.A.) in a strategic partnership transaction with Mark Foods, a New York-based importer and marketer of quality seafood products to high-end retailers, distributors, and restaurant groups in the U.S.

Mitsui & Co (U.S.A.) is the U.S. subsidiary of Mitsui & Co Ltd, one of the largest general trading companies in Japan and publicly traded on the Tokyo Stock Exchange with $100 billion dollars in total assets. The group owns considerable seafood resources worldwide, including shrimp farming operations in Asia and salmon farming operations in South America.

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