Rodger May, McKinley Capital close deal for Peter Pan

US seafood entrepreneur Rodger May and Alaskan private equity McKinley CapitalManagement have closed a deal for salmon and whitefish processor Peter PanSeafoods from Japan’s Maruha Nichiro.

May and McKinley confirmed to Undercurrent News the deal closed on Dec.31. Undercurrent reported the deal agreement on Nov. 2 after first reporting the interest of McKinley and May, who already owns Alaskan seafood distributorNorthwest Fish Company, in July last year. 

The deal creates a company with sales of over $300 million, as Northwest Fish generates a turnover of between $100m-$125m with Peter Pan at around $200m, depending on the salmon prices, industry sources told Undercurrent. 

Peter Pan and Northwest Fish create a “formidable player in the Alaskan sector”,one Undercurrent source who asked not to be named told Undercurrent. 

May’s strong downstream sales links with Northwest Fish will take Peter Pan’s salmon and whitefish raw material much deeper into the market, sources told Undercurrent. “He (May) will be able to capture that extra margin and create a company with the size to be a strong competitor in Alaska.”

The deal includes all Peter Pan’s processing facilities at King Cove, Dillingham, Port Moller, and Valdez, as well as the equipment in each. Also, May and McKinley have bought support facilities at Naknek and Sand Point, as well as the Seattle warehouse near Fishermen’s Terminal. All trademarks, brands, and labels go along with the sale. 

Antarctica Advisors ran the sell-side for Maruha Nichiro on Peter Pan. 

Executives with Antarctica and Maruha Nichiro were not immediately available for comment. 

When Maruha Nichiro confirmed the deal on Nov. 2, the Japanese giant revealed an extraordinary loss of JPY 3 billion ($28.6 million) on the sale. Maruha Nichiro also revealed it net JPY 4bn ($38.12m) from the deal, after deducting liabilities. PeterPan reported an operating loss of JPY 2.20bn ($20.96m) on sales of JPY 15.76bn($150.19m) for the year ending March 2020, after eliminating intercompany transactions. 

In recent years, Peter Pan’s Alaskan salmon business “has continued to experience operating losses due to factors such as soaring raw sh prices due to the intensified competition, high costs due to poor catch of sh, and fall in production”, said Maruha Nichiro, at the time. 

Source: Undercurrent News