Premium Brands Holdings Corp. (TSX: PBH) is partnering with the Membertou First Nation and coalition of other Mi’kmaq nations in Atlantic Canada on a $1 billion acquisition of Clearwater Seafoods Inc. (TSX:CLR) in Bedford, Nova Scotia.
Premium, headquartered in Richmond, plans to raise $250 million through a bought deal public offering and private placements to help finance the deal, with Clearwater to be owned as a joint venture between Premium and a coalition of Mi’kmaq First Nations, led by the Membertou First Nation on Cape Breton Island.
Clearwater is a seafood company specializing in shellfish. Clearwater shareholders will receive $8.25 per share, and will continue to operate as a separate division and maintain its brand. The deal is subject to court and shareholder approval.
“Clearwater on its own is a world class seafood company with a great management team, best-in-class products and a globally respected brand,” Premium Brands CEO George Paleologou said in a press release.
“In partnership with us and the Mi’kmaq First Nations communities, it will become an even stronger business by leveraging the complementary strengths of our three organizations.”
A coalition of Mi’kmaq First Nations in Atlantic Canada own the commercial fishing licences that supplies Clearwater with seafood.
“This represents a historic opportunity for the Mi’kmaq to strengthen our role in Canada’s commercial fisheries, including playing a much larger part in its unique deep-water fisheries,” said Membertou Chief Terry Paul.
“Mi’kmaq will not only become 50% owners of Clearwater with our new partner, Premium Brands, but will proudly hold all of Clearwater’s Canadian fishing licences within a fully Mi’kmaq owned entity.”
Mi’kmaq fishermen have been at the centre of a bitter dispute with non-aboriginal commercial lobster fishermen in recent weeks, with Mi’kmaq fishermen claiming treaty rights to fish for lobster out of season.
