Halifax-based Clearwater Seafoods announced a billion-dollar deal Monday to sell the company to a partnership between Premium Brands of British Columbia and a coalition of Mi’kmaw First Nations.
It is “the single largest investment in the seafood industry by any Indigenous group in Canada,” said a news release jointly issued by the coalition and Clearwater.
The coalition will be led by the Membertou band in Cape Breton and Miawpukek in Newfoundland and Labrador.
Membertou Chief Terry Paul said the Mi’kmaq will hold Clearwater’s Canadian fishing licences within a fully Mi’kmaq-owned partnership.
“This deal is a transformational moment for all participating communities,” Paul told CBC News. “We will now have access to the offshore fishery from an ownership position.”
Chief Terry Paul said Membertou First Nation will be leading the coalition of Mi’kmaw communities in the purchase of Clearwater Seafoods. (CBC)
The Mi’kmaw coalition will put up $250 million for its share of the purchase and pay for it through a 30-year loan from the First Nations Finance Authority.
“I feel excited about it,” said Paul. “We’re a player now. In order to be in business, you first have to play the game.
“You have to play to win, and we won.”
North America’s shellfish leader
Clearwater is North America’s largest producer of shellfish and holds Canadian harvest licences for a variety of species including lobster, scallop, crab and clams.
It also has harvesting operations in the United Kingdom and South America and a worldwide sales operation.
The deal is being recommended by Clearwater directors and would see shareholders paid $8.25 a share. That’s a 15 per cent premium above the price last week and a 60 per cent premium compared to the price before Clearwater announced it was for sale in March.
The sale is expected to close in the first half of 2021.
Clearwater Seafoods was put up for sale earlier this year. (Robert Short/CBC)
“I am very pleased to recommend this transaction. It represents great value for shareholders, leverages the expertise within the company while advancing reconciliation in Canada,” Colin MacDonald, chair of the board of directors of Clearwater, said in a statement.
“I am confident that this transaction will enhance the culture of diversity and sustainable seafood excellence that exists at Clearwater.”
Other Mi’kmaw bands show interest
The agreement will see the Mi’kmaw coalition and Premium Brands create FNC Holdings to acquire Clearwater shares.
Several other Nova Scotia bands have confirmed their intention to join Membertou and Miawpukek, according to the announcement. They include Paqtnkek , Pictou Landing, Potlotek, Sipekne’katik and We’koqma’q.
Membertou said the purchase will not take away from the First Nation’s current revenues or financial position.
Moderate livelihood fishery not impacted
Paul said the Clearwater deal will not slow the push for a moderate livelihood fishery in Nova Scotia.
Membertou and several other bands have launched or intend to launch self-regulated lobster fisheries.
They are exercising a treaty right recognized by the Supreme Court of Canada, but the move has angered — and even prompted violence — from some non-Indigenous commercial fishermen.
“Our investment in a commercial offshore fishery is completely separate from our commercial inshore and moderate livelihood fisheries,” Paul told CBC News.
“We’re still very incredibly committed to our other fisheries and to our communities on moderate livelihood. This deal does not impact the processes and the discussions taking place in other areas of the fishery.”
‘Globally respected brand’
George Paleologou, CEO and president of Premium Brands, praised Clearwater as “a world-class seafood company with a great management team, best-in-class products and a globally respected brand.”
“In partnership with us and the Mi’kmaw First Nations communities, it will become an even stronger business by leveraging the complementary strengths of our three organizations,” added Paleologou.
Clearwater was founded in 1978 by John Risley and Colin MacDonald.
Now in their 70s, they have said the company was put for sale earlier this year as part of succession planning since their children were not interested in taking over the business.
TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.
The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.
Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.
Consolidated comparable sales were up 0.3 per cent.
On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.
The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.
The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.
Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.
Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.
On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.
The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
TORONTO – Thomson Reuters reported its third-quarter profit fell compared with a year ago as its revenue rose eight per cent.
The company, which keeps its books in U.S. dollars, says it earned US$301 million or 67 cents US per diluted share for the quarter ended Sept. 30. The result compared with a profit of US$367 million or 80 cents US per diluted share in the same quarter a year earlier.
Revenue for the quarter totalled US$1.72 billion, up from US$1.59 billion a year earlier.
In its outlook, Thomson Reuters says it now expects organic revenue growth of 7.0 per cent for its full year, up from earlier expectations for growth of 6.5 per cent.
On an adjusted basis, Thomson Reuters says it earned 80 cents US per share in its latest quarter, down from an adjusted profit of 82 cents US per share in the same quarter last year.
The average analyst estimate had been for a profit of 76 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
