Price not yet right for potential Tassal acquisition of De Costi Seafoods
Australian salmon company Tassal Group Limited (Tassal) has responded to speculation in the media that a potential acquisition of De Costi Seafoods, one of the largest names at the Sydney Fish Market, has been completed, saying this is not yet the case.
Industry commentators have suggested that the price is not yet right for Tassal. Mark Ryan, Managing Director and CEO of Tassal said that should a deal with De Costi Seafoods ultimately be completed, “it would be a deal that is shareholder value accretive”.
Tassal was established in 1986 and produces Tasmanian Atlantic salmon. The Company employs over 800 people. It was listed on the Australian Securities Exchange (ASX) in November 2003.
De Costi Seafoods was established at the Sydney Fish Markets, Pyrmont in 1981. It seafood range includes both fresh and premium frozen lines, supplied mostly to the hospitality industry.
“If an acquisition of De Costi Seafoods had been agreed or completed, Tassal would have notified the market,” said Mark Ryan, Managing Director and CEO of Tassal.
Mr Ryan said the due diligence process on De Costi Seafoods had not yet been completed, and Tassal expected its due diligence to be completed soon.
Tassal has engaged both Grant Thornton and KPMG to provide professional assistance on due diligence and overall deal structure and terms.