Daybrook Holdings Inc. and Daybrook Fisheries Inc. in Empire have negotiated the sell of their Louisiana-based plant-processing operations and a 25 percent stake in Westbank LLC, its related marine fishing operations, in a stock purchase and merger with Oceana US Holdings Inc.
The primary shareholders in the current business will retain 75 percent of Westbank. Daybrook will obtain its supply of raw materials through an exclusive long-term fish supply agreement with Westbank, under a 30-year term with an option to renew the agreement.
Daybrook Fisheries processes menhaden into fishmeal and fish oil products, according to its website. Its processing plant capacity is 120 tons of raw fish per hour and average annual production targets are 60,000 tons of fishmeal and 30,000 tons of fish oil. It employs an average 360 people.
Oceana Group Ltd., a public company, is the largest fishing company in South Africa. It supplies fish and fish products to consumers in many African countries, Asia, Europe, the U.S. and Australia. Oceana catches, processes, markets and distributes canned fish, fishmeal and fish oil, horse mackerel and hake, lobster and squid.
“The partnership is a natural fit between the two entities and the transaction will provide excellent growth opportunities for the combined enterprise to expand production capacity and global market share,” said Gregory Holt, founder and president of The Daybrook Companies.
Oceana CEO Francois Kuttel said that the transaction will provide Oceana with a significant opportunity to expand its international operations, to diversify its targeted fish species, products, operational geography and exposure to currency fluctuations.
“Oceana views Daybrook as an extremely well-run business that operates in a well-managed, sustainable fishery and services markets (fishmeal and fish oil) which are attractive over the long term,” he said.
The deal has the support of Oceana’s major shareholders, Tiger Brands Ltd. and Brimstone Ltd., the company said. The proposed transaction has received approval from the U.S. Maritime Administration, and is subject to approvals from Oceana shareholders, a Hart-Scott-Rodino Antitrust filing and other typical regulatory approvals.