American Seafoods gets bigger

Posted by The Highliner

Posted: August 18, 2008 - 7:38 pm

American Seafoods Group, the Seattle-based factory trawl giant, says it has bought a competing vessel, the Highland Light, part of longtime Alaska industry player Al Chaffee’s company, Yardarm Knot Inc.

It was no secret that Chaffee had been shopping the Highland Light, so no surprise to see the sale.

Here are a couple of quick thoughts on the transaction.

First, this marks the second round of consolidation we’ve seen this year in the Bering Sea pollock factory trawl sector, which is limited to 19 vessels under federal law.

In May we saw Glacier Fish Co., with two factory trawlers at the time, announce a deal to buy the Alaska Ocean (The Highliner, May 22).

My second thought is, how is it possible for American Seafoods to grow larger with the acquisition of another ship?

American Seafoods already was the fleet’s biggest fish with seven vessels. Now it has eight.

My understanding was that American was precluded from expanding because it already controlled the maximum allowable percentage of the pollock catch.

Count on The Highliner to investigate “the receipt of applicable government approvals” mentioned in the following press release, which naturally doesn’t disclose the purchase price for the 270-foot Highland Light.

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August 15, 2008

American Seafoods Announces Acquisition of Factory Trawler Highland Light

SEATTLE (BUSINESS WIRE) – America Seafoods Group (“American Seafoods”) today announced that it has acquired the factory trawler Highland Light and the fishing vessel Tracy Anne from subsidiaries of Yardarm Knot Inc. following the receipt of applicable government approvals. The purchase price was not disclosed.

With the acquisition, American Seafoods further expands its Alaskan catcher-processor fleet. The fleet is used primarily to harvest whitefish in the frigid waters of the Bering Sea and off the Pacific coasts of Washington and Oregon. American Seafoods also harvests cod aboard three catcher-longline vessels.

“The addition of the Highland Light to our state-of-the-art factory trawler fleet will enhance American Seafoods’ flexibility to bring high-quality, frozen-at-sea whitefish products to our customers,” said Bernt O. Bodal, chief executive officer of American Seafoods Group. “We are looking forward to working with our Alaskan partners to fold this new catching and processing platform into our operations.”

The acquisition marks another major step in the increasing ownership by Alaskans in the Bering Sea commercial fisheries. Two Alaskan community development groups, Coastal Villages Region Fund and Central Bering Sea Fishermen’s Association (CBSFA), both of which supply valuable fisheries quota to the company, combined own approximately 50 percent of the company. Coastal Villages represents 20 western Alaska villages and around 9,000 residents along the coast of the Bering Sea from Scammon Bay to Platinum, while CBSFA represents the 500 residents of the community of St. Paul in the Pribilof Islands.

Financing for the transaction was arranged by Banc of America Securities LLC and Glitnir Banki, hf. Glitnir Capital Corporation in New York also acted as exclusive financial advisor to American Seafoods in connection with the deal.

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