Cooke begins work to complete the purchase of Pescanova

It’s time for change in Nueva Pescanova. From the door inward, in the facilities of the first fishing group in Spain, the the first signs of a change in direction What’s next, with the sale of the company to the Canadian group Cooke, if the negotiations that the king of salmon is conducting exclusively with Abanco, the bank that owns 97.8 percent of the fishery, succeed.

The most obvious sign is Cooke lands in the Nueva Pescanova headquarters offices in Chapela. The company managed by Clenn Cooke sent a team made up of 40 peoplefrom technical and financial profile, with the intention of getting to know and evaluate on the ground the property that he is willing to acquire, for an amount that, according to the sources of the operation, amounts to 640 million euros. This amount will give the right to take ownership of 80% of Nueva Pescanova, and Abanca will retain 20% ownership with the commitment to continue to support Pescanova and ensure that the Canadian giant maintains and even increases the company’s core activity on the Galician economy.

“It’s a normal process in this type of major operation. It’s time for audits, management reports and other field studies that the buyer must have, which are part of the preliminary contract signed last week,” explained sources connected to the negotiations.

External audit

Memorandum of Understanding (MOU): Memorandum of Understanding) agreed between Abanco and Cooke includes the preparation of a deep analysis, which would be part of the mission entrusted to the delegation sent by Cooke. “External consultants hired by the customer conduct an investigation or audit in which examine in detail the different areas of the company determine whether it fulfills its obligations with due diligence and whether there are no significant legal risks arising from its activity,” these sources explain. In the case of Pescanova, “they have to do a lot deep analysis: accounting, tax, legal, personnel, shipping and factory technology, brand…, and this whole process requires time and a large human team”, they explain. The presence of this Canadian deployment in Nueva Pescanova will last two or three weeks, they added.

Meanwhile, at Cooke Inc., they still refuse to talk about the acquisition of the Galician fishing group. “In the coming weeks, Cooke and Abanca will advance in the negotiation process with the aim of reaching an agreement to take over a majority position in Nueva Pescanova,” sources from the Canadian group said, repeating the same message as a week ago, when both sides confirmed the preliminary agreement.

Sources in the negotiation process explain that Cooke will already be able to dispose of the fishing group’s accounts closed on March 31, since during customer selection process, in which the Californian fund Platinum Equity, owner of the fishing group Iberconsa from Vigo; and American fishing company Red Chamber, bidders had access to Nueva Pescanova’s results until December 31, 2022: excluding the last quarter, turnover was below 1,000 million euros from the previous year.

The fishing industry is climbing the list of the largest companies in Galicia

According to data from Ardan reportVigo Free Zone Consortium, everyone production system of Galician fisherieswhich includes extractive activity and aquaculture, processing and distribution of fishery products, created an economic value in 2021 for Galicia of more than 1.1 billion euros. On average, companies recorded an increase in their gross value added of close to 17%, compared to 2020. This figure represents approximately 5% of the total economic value that the Galician business fabric contributes to GDP. In addition, the production system of fishing is responsible for 1 in 20 direct jobs in Galicia.

Nova Pescanovawith more than 1,000 million euros in turnover leads the ranking of maritime companiesfollowed by fishing in Vigo Profand, with 800 million in sales last year will be the largest company with Galician capital when Nueva Pescanova passes into the hands of the Canadian group Cooke. In recent years, the company has entered into its stake in Corporación Financiera Alba, the investment arm of Banca March, which has taken 23%, but the head of the conglomerate is Enrique García Chillón from Vigo.

follows him Iberconsa, from the Canadian group Platinum, with 400 million; World fishing company Wofco, a Teis-based fishing company founded in 2016 by several partners, is climbing the ranks, as are other fishing companies such as Mascato (Lloves Vieira family) Comercial Pernas (Coper) or Armadora Pereira and Fandicosta.