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Yumbah Aquaculture has announced the merger of Eyre Peninsula Seafoods (EPS), Australia’s largest farming and processing mussels company, expanding its seafood portfolio.
Although some details of the agreement are unknown – such as the amount for which the agreement was made – it represents an exponential growth opportunity for Yumbah. EPS sells more than 2,300 tons of mussels under the Boston Bay Mussels and Kinkawooka Mussels brands throughout Australia and in export markets.
As one of the key owners and managers of EPS, CEO Mark Andrews, explained, “It’s an exciting time for two companies with operations in Port Lincoln, but also two southern Australian-based companies with a global seafood perspective.” He noted that the transaction will accelerate the growth of EPS while creating complementary capabilities and operational synergies with Yumbah.
For Yumbah, this merger is a double boost. On the one hand, for its Port Phillip Bay mussel business in Victoria. On the other hand, for its presence on the EPS in South Australia, which produces abalone and oyster seed in Port Lincoln.
Yumbah CEO David Wood said the transaction was strategically and financially significant, increasing the revenue base of the total business by approximately 30%. “Our ongoing acquisition strategy is focused on well-managed operations of scale and, in this case, we are also able to leverage our existing Victorian mussel production.”
Adding up to win
With this merger, an astonishing production is achieved. Figures include abalone production on four farms in Tasmania, Victoria, and South Australia producing more than 750 tons per year. Added to this is the generation of over 150 million oyster seeds per year from South Australian and Tasmanian hatcheries for farms in South Australia, New South Wales, and Tasmania. Finally, they estimate the production of mature farmed oysters to reach approximately 450,000 dozen per year from two sites in Tasmania, with committed investments aimed at increasing the yield to 650,000 dozen.
On the purely financial side, this acquisition would also involve a 37.5% stake in ASX-listed Sydney Rock Oyster producer East 33 Ltd.
A merger that will not have a major impact on the company’s day-to-day operations
In addition, Yumbah clarified in its media release that the company’s management and staffing structure will remain the same. The key owners and managers, Mark Andrews, CEO, and Andrew Puglisi, executive director, will remain in the business after the transaction, as will all current EPS staff.
As Wood detailed, Andrews and Puglisi’s plans seem to him to be most appropriate and necessary for the company’s growth. “We have been impressed with their foresight to develop not only the water space to grow the product but also a major processing facility that supports quality mussels reaching consumers around the world.”
Furthermore, for the EPS, the acquisition also represents an opportunity to accelerate its growth plans. Andrews explained that this deal helped propel EPS as “part of a larger and broader seafood business.”
Adding that, “Yumbah is a recognized innovator and is committed to sustainability and growth.” Something that was crystal clear by “the company’s recognition as an Above and Beyond producer by the Aquaculture Stewardship Council reflects Yumbah’s values, which strongly align with our own.”
About Yumbah Aquaculture
Yumbah is a leading name in responsible aquaculture, harnessing the purity of the Great Southern Ocean. With farms in Tasmania, Victoria, and South Australia, they cultivate premium abalone, oysters, and mussels for global enjoyment. As stewards of the ocean, they nurture and process our shellfish with care, delivering an authentic coastal seafood experience.
About Eyre Peninsula Seafoods (EPS)
Nestled along the oceanic waters of Boston Bay of South Australia, Eyre Peninsula Seafoods harvests premium native blue mussels throughout the year. With three distinguished brands – Boston Bay Mussels, Kinkawooka Mussels, and formerly, Spencer Gulf Mussels – the company’s commitment is unwavering. From water to plate, a vigilant production process ensures the highest quality of mussels, instilling trust and satisfaction in every bite.
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