Premium Brands, coalition of Mi’kmaq First Nations acquire Clearwater Seafoods

Premium Brands Holdings Corp. and a group of Mi’kmaq First Nations, led by Membertou First Nation, are jointly buying Clearwater Seafoods Inc., a partnership that will facilitate the largest investment in the seafood industry by a Canadian Indigenous group.

Halifax-based Clearwater is the largest holder of shellfish licenses and quotas in Canada, and in March the company announced a strategic review. Late Monday Premium Brands announced it is teaming up with a group of Mi’kmaq First Nations to acquire Clearwater together for $8.25 per share in cash.

The purchase price represents a 14 per cent premium to Clearwater’s closing price Monday – and a 60 per cent premium to the Clearwater’s weighted average stock price before the strategic review was announced.

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The joint venture will be equally owned by Premium Brands and the coalition of Mi’kmaq First Nations.

“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,” chief Terry Paul of Membertou First Nation said in a statement.

“Mi’kmaq will not only become 50 per cent owners of Clearwater… but will proudly hold all of Clearwater’s Canadian fishing licences within a fully Mi’kmaq owned entity,” he added.

Premium Brands chief executive George Paleologou said in a statement the company is “pleased to be playing a role in this historic opportunity to significantly enhance First Nations’ participation in Canada’s east coast commercial fisheries.”

To help fund the deal, Premium Brands is selling $200-million of new shares in a bought deal financing.

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