N.B. seafood company reaches $225M deal to acquire salmon farming operations

Atlantic Canada’s largest salmon producer is looking to grow even bigger.

New Brunswick-based Cooke Inc. has reached a deal to acquire farming assets operated by Mowi Canada East, pending final approval.

The deal, set to close by the end of the year, involves operations in New Brunswick, Prince Edward Island and Newfoundland and Labrador. Cooke says the sale includes freshwater hatcheries, sea farming sites and two processing plants.

Based in Norway, Mowi’s publicly traded parent company generated record revenue of 5.73 billion euros last year.

If the $225-million deal goes through, Cooke would produce more than one out of every three farmed Atlantic salmon raised in Canada.

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“What we’re really aiming to do is to stock our ocean farms with larger fish so they spend less time at sea and they can grow more rapidly, get them to market quicker,” said Joel Richardson, Cooke Inc.’s public relations vice-president.

Cooke already produces more than half of Atlantic Canada’s farmed Atlantic salmon. If the deal is finalized, that number would grow to nearly 70 per cent.

“We plan to invest about a half a billion dollars in Atlantic in terms of our shore-based freshwater hatcheries, our seaside vessels,” said Richardson.

The investment will also include smart farming technology, using underwater cameras, monitors and AI to track how fish are feeding and responding in real time.

Richardson says the company also plans to expand its eco-friendly fish health technologies across Mowi’s sites.

He says the technology is especially important in Atlantic Canada where the industry faces certain challenges.

“Atlantic Canada is a challenging place to operate because we have such unique marine conditions. We have unique weather. There’s often severe weather and storms that comes in to our shorelines and we have to manage that risk and prepare for it,” he said.

He adds the company doesn’t expect any staffing changes and plans to retain Mowi’s approximately 250 employees.

The deal is still subject to due diligence and regulatory approvals.

–with a file from The Canadian Press