New Zealand King Salmon Strengthens
The New Zealand King Salmon Company Limited has welcomed one of New Zealand’s pre-eminent private equity managers, Direct Capital, as a new shareholder following an equity restructuring process.
Rationalising the salmon industry by its formation in 1996, with the merger of Southern Ocean and Regal Salmon, New Zealand King Salmon is New Zealand’s largest salmon producer and marketer and has been wholly owned by interests of the Tiong Family from Malaysia.
The Tiong representative in New Zealand, Mr Thomas Song expressed appreciation and support in welcoming Direct Capital to the company. “New Zealand King Salmon is one of the most favoured assets within our NZ portfolio.” “It has performed exceptionally over the last few years both in the NZ market and as an exporter facing challenging conditions”, said Mr Song. “We will retain our majority ownership but the time was right to widen the company shareholder base and seek a partner that would provide valuable strategic input and additional governance oversight as the company expands its activities. The large Direct Capital team of professionals will provide extensive experience in a range of areas and we are pleased with their demonstrated determination to partner in the future of New Zealand King Salmon.”
Ross George, one of three founding directors of Direct Capital in 1994, indicated that this partnership was one of their most important acquisitions in recent times. “New Zealand King Salmon has been on our radar for a number of years, we have observed its growth in an industry on which everyone will have increased reliance as a provider of nutritional protein. The company professionally performs at the top end of expectations and we also knew that the Tiongs offered a solid and long term reliable partnership,” commented Mr George. “We are delighted to now be part of an exciting company on a solid growth path.”
Paul Steere, New Zealand King Salmon’s Chief Executive indicated that Management was also pleased with the introduction of Direct Capital’s skills and experience while retaining the strong and supportive relationship with the Tiong Group.
“Significant growth rates over recent years underpinned by an added value strategy while ensuring export pricing reflected the premium quality of our products, has provided a strong and resilient platform for further growth to meet increasing demand. While additional water space is a challenge, we are working through a range of options with the regulatory authorities. Similarly we need additional processing capabilities as a consequence of growth. Bringing Direct Capital to the Board table provides further expertise and experience to support Management in building on the success achieved to date.”
“We look forward to the new era that these changes will bring.” concluded Paul Steere
The Tiong Family was advised by Macquarie Capital.
Contact
Paul Steere 029 7783373
New Zealand King Salmon
- NZ’s largest integrated aquaculture company and largest global farmer of Chinook salmon.
- Sales exceed $80million; 415 staff; over 6,500mt harvested. Exports of $35 million
- 6 Seafarm sites (Marlborough Sounds); 2 Hatcheries(Waikoropupu Springs, Tentburn); 4 processing factories(Nelson); National Sales office (Auckland) Australian Sales & Distribution Office (Sydney)
- Regal, Southern Ocean and Seasmoke Brands;
Direct Capital
- A private equity Manager established in 1994.
- Team of 13 Professionals – in excess of 70 years private equity experience
- Funds raised exceed $440 million
- Leading Financial Institutions in both international and NZ have supported.
- Work with investee companies over the long term to create value for all shareholders
- The company manages a diverse portfolio in a range of Industry sectors, including Food, specialty chemicals, elderly healthcare, retail & leisure, energy, audio, livestock, travel, nutraceuticals, software, freight forwarding, whiteware.
