Salmon specialist, Tassal, has struck a deal to buy one of the biggest players in NSW’s seafood market, De Costi.
Tassal says it has completed an examination of De Costi’s books and the pair have signed a non-binding sale agreement.
De Costi’s owners will receive an undisclosed sum of cash and Tassal shares as part of the deal, which does not include the sale of De Costi’s Sydney Fish Markets store or two others at Bondi and Chatswood.
George Costi will also remain in charge of De Costi Seafoods for at least three years.
Mark Ryan, MD and CEO of Tassal Group Limited, described the move to acquire De Costi Seafoods as a compelling strategic acquisition.
“De Costi provides Tassal with an attractive vehicle to deliver the company’s salmon and seafood growth strategy, which is about maximising domestic market per capita consumption of seafood. The seafood market in Australia is assessed at $4.3 billion per capita,” Ryan said.
“This acquisition would allow us to build on Tassal’s successful domestic market focus with salmon, increase Tassal’s vertical integration in salmon, and further drive scale, and the efficiencies and benefits that will flow from the increased scale that the seafood offering will bring.”
