Spanish bank Abanca Corporacion Bancaria said Canada's Cooke Inc (Cook) would be the ultimate buyer of Spanish seafood company Grupo Nueva Pescanova.

At the end of last month, Pescanova's controlling shareholder, the Galician bank Abanca, negotiated with three companies (Canada Cooke, American Red Chamber and Platinum) for a price of no less than 700 million euros (including 500 million euros in liabilities and 200 million euros in net assets) Sale of all assets of Pescanova.

Abanca holds 97.8% of Pescanova's shares and will sell 80% of them to Cooke. Pescanova's total enterprise value reaches 800 million euros, and Rothschild & Co acted as transaction advisors.

Abanca said, "Since 2015, we have made considerable efforts to maintain the existence of Pescanova and maintain the integration of the parent company and its subsidiaries, with its headquarters in Galicia, Spain." After Cooke acquired Pescanova, The latter will retain its headquarters in Vigo, Spain, and exclusive negotiations on the deal will take place in the coming weeks.

A Cooke spokesperson said: "The acquisition agreement we have reached will allow us to further our development roadmap and integrate Pescanova into a major global marine protein family business company. Cooke is an ideal investor for Pescanova and we have proven experience in company mergers and acquisitions. and strategic planning for vertical integration.”

Abanca said Cooke, which has aquaculture, marine capture and nutrition sectors, operates in 12 countries around the world and employs nearly 13,000 people. "Concluding a deal with such a company will fulfill its commitment to create a reputable industrial partner that will facilitate the growth of the Group's fishing business and create new investments in Galicia."

In its most recent fiscal year (ending March 31, 2022), Pescanova achieved operating income of 1.08 billion euros and earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately 80 million euros. In 2022, Cooke will acquire Tassal Group, an Australian aquatic company with an annual turnover of US$3 billion.

After Cooke acquires Pescanova, the turnover will exceed 4 billion US dollars, ranking among the top five aquatic companies in the world (the top five aquatic companies in the world in 2022 are Japan Maruha Riro, Nippon Suisan Co., Ltd., South Korea Dongwon Group, Thai Wansheng and American Wei). At the same time, Cooke will add European seafood processing business, as well as European downstream market resources and well-known brands. Pescanova also has strong roots in North America, with a number of large customers such as Costco Wholesale, Albertsons Companies and Aldi.

Pescanova also owns vannamei farming and processing operations in Ecuador, Guatemala and Nicaragua, and has a small stake in Indian white shrimp exporter Abad Fisheries. Argenova, Pescanova's Argentine subsidiary, is one of the main producers of Argentine red shrimp, and also has Argentine squid and cod business; Pescanova has 60,000 tons of hake fishing and processing businesses in South Africa and Namibia.