JUNEAU, Alaska — The Alaska Native-owned Sealaska Corporation has added to its portfolio of food companies with the acquisition of a U.K. seafood importer and processor.
The deal for Chessington, Surrey-based New England Seafood International Ltd. (NESI) builds on Sealaska’s existing market presence via its Seattle-based Orca Bay Foods brand.
Both NESI and Orca Bay were founding members of the Global Dialogue on Seafood Traceability, which focuses on sustainability and ethical sourcing practices in the industry.
Based on that shared commitment and familiarity, “Sealaska was the logical entity to reach out to” when NESI’s owners looked to sell the company, Matt Carle, senior director of corporate communications at Sealaska Corporation, said in an email to Tribal Business News.
“Sealaska is constantly evaluating options to expand its portfolio and partner with like-minded organizations that share our values around inspiring consumers to enjoy more sustainable, healthy seafood,” Carle said. “The combination will offer both businesses increased access to resources, broader product and category capabilities and deeper market access.”
Carle said the expanded seafood offerings and added management capacity positions Sealaska “for further investments to build on the platform that has been created in recent years.”
New England Seafood supplies more than 30 species of wild and farmed fish to supermarkets, smaller retail stores and various restaurant groups. The company sources seafood such as tuna, salmon, cod, haddock, seabass and seabream from 37 countries and processes them at two U.K.-based facilities.
Founder Fred Stroyan, who retains a stake in the company and will serve on its board of directors, grew NESI from a startup in 1991 to a $200 million enterprise that employs 650 people across its global operations. Key management team members at the company, including CEO Dan Aherne, will remain in their roles and operate the NESI as an independent brand.
“NESI grew from my passion for bringing the world’s best seafood to the UK,” Stroyan said in a statement. “This alliance solidifies my vision for a globally connected seafood enterprise that is committed to trusting relationships, quality products and ocean health.”
Terms of the deal were not disclosed.
Juneau-based Sealaska is a regional Alaska Native Corporation owned by 23,000 Tlingit, Haida, and Tsimshian shareholders. The company’s portfolio includes holdings in natural resources and land management, environmental services and sustainable foods.
Sealaska Corporation had $77.8 million in net income on $699.6 million in revenues in 2019, according to the company’s annual report.
In addition to Orca Bay, Sealaska’s food holdings also include Seattle-based seafood processor Independent Packers and Juneau-based Barnacle Foods, which manufactures a range of salsas, hot sauces, pickles, jams and jellies using bull kelp and other Alaskan ingredients.
The NESI transaction comes amid a period of volatility in the seafood industry related to the COVID-19 pandemic. In the U.S., the food service and restaurant sector represents about 60 percent of seafood volume, which “has been decimated” by closures and reduced capacity mandates aimed at curbing the spread of the virus, according to Gordon Brothers Group Inc., a Boston, Mass.-based advisory, restructuring and investment firm.
“The reduction in restaurant business has had a material impact on the seafood industry with some estimates predicting a 25 percent reduction in seafood sales to the food service sector as of the fall,” according to a recent seafood industry report from Gordon Brothers. The firm noted the grocery sector has experienced an uptick in business, but not enough to offset the losses in the food service industry.
Despite the challenging business environment, Carle said the Sealaska-NESI deal will allow both companies to build on their collective strengths in the seafood industry. The acquisition also expands Sealaska’s reach outside of North America.
“Each side brings a longstanding commitment to sustainable operations and together we have an opportunity to expand our market reach and tap into the expertise of each company,” Carle said. “Sealaska’s ancestral ties to the land and the sea combined with the NESI’s innovative approach to using science and deeply understanding its consumers create a powerful and capable alliance.”
