Portunus make acquisition in the Pangasius Industry

Portunus, a multinational seafood group, is set to acquire a Vietnam-based pangasius processing company and target more consolidation in the industry.

The move from Portunus to acquire Vinafish, which has been a supplier of pangasius from the Mekong Delta since 2006, is to establish better control on supply, as well as to look to consolidate the industry, said Prem Lalvani, of Iliad Avenues, the financial advisory boutique which advised on the deal.

“They have a five-year plan to expand the company to sales of $50 million (€35.9 million) and possibly look to a listing in Ho Chi Minh,”.

“Pangasius companies are struggling for capital. It is a unique opportunity to get into the industry,” he said. “Portunus is seeking opportunities to participate in Vietnam sustainable seafood industry consolidation.”

The pangasius industry is having a tough 2011. Production has dropped because of the industry’s problems securing capital to increase production, after a year of low prices over 2010.

A letter of intent was signed in December, 2010 and the deal is expected to complete over the next few weeks, said Lalvani.

The Vinafish plant has a capacity to process 30 to 35 containers per month.

Iliad Avenues, which has offices in Mumbai and Ahmedabad in India and Miami and Chicago in the United States, is targeting the seafood sector.

“It’s a vast industry that is highly fragmented and doesn’t have good access to financial services,” he said.

Portunus has offices in the United States, Iceland, Chile and Vietnam and sources a range of products, from salmon to Alaska pollock.

Source: Vietfish international





One Response to Portunus make acquisition in the Pangasius Industry

  1. Nice post…This is really great post. about seafood supply..

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