Additional Equity Investment Through the Reorganization
of the White Fish Business in North America
Nippon Suisan Kaisha, Ltd. (President and CEO: Naoya Kakizoe) is pleased
to announce that in conjunction with the merger of Alaska Ocean Seafood
LP (hereinafter "AOS"), a fishery company accounted for by the
equity method in which Nippon Suisan (U.S.A.), Inc.—a wholly-owned
subsidiary of the Company—holds 25% of its shares, with Glacier
Fish Company, LLC (hereinafter "GFC"), a fishery company in
the same line of business, the Company has decided to acquire 25% of GFC
shares through the exchange of AOS shares with GFC shares and an additional
equity investment, and signed an agreement on May20 , 2008 (local time).
The additional equity investment, which will accompany the acquisition
of shares, will be in the amount of USD 26.3 million (approximately 2.7
billion yen). As is the case with the investment in AOS, this investment
will be made through Nippon Suisan (U.S.A.), and GFC will subsequently
become an associated company of the Nissui Group accounted for by the
The investment in GFC will be made to enhance the accessibility to resources,
which is a key measure under the New TGL Plan (the Medium-Term Management
Plan for FY2006 through FY2011), for the purpose of enhancing the competitive
edge of the Group as a whole by linking resources to markets in an integrated
manner. In particular, this investment will increase the Group’s
capacity to supply high-quality products by processing Alaska Pollock,
etc. on the sea, and will generate synergies among the Group’s global
product and sales networks.
Overview of GFC
Trade name: Glacier Fish Company, LLC
Location: Seattle, Washington
Representative: Erik Breivik, CEO
John Bundy, President
Date of merger: Scheduled for early June 2008
Major shareholders and shareholding ratio:
Norton Sound Economic Development Corporation, A.S.Atlantic-U.S.A.Inc.
Nippon Suisan (U.S.A.), Inc. 25%
Main business: Owns and operates factory trawlers and long-liners and
runs a white fish business including Alaska Pollock, Pacific cod and
Major products: Production and sales of fish fillets, fish paste (surimi)
and fish roe
Number of employees: 400
Sales USD 89 million (approximately 9.3 billion yen)
Sales USD 112 million (approximately 11.7 billion yen) (FY2008 projection)
Facilities: 3 factory trawlers, 2 long-liners
Relationship between AOS and Nippon Suisan Kaisha ,Ltd.(Nissui)
In 2002 Nissui acquired 25% equity in AOS, which was later succeeded by
Nippon Suisan (U.S.A.).
(Main business of AOS and FY2007 results)
Owns and operates 1 factory trawler and runs a white fish business including
Alaska Pollock and Pacific whiting.
Nissui handles AOS’ fish paste (surimi), pollock roe, fish meal
and other products, while Gorton’s, Inc. and J.P. Klausen & Co.
A/S (Denmark) and other companies of the Nissui Group handle AOS’ fillets,
fish paste (surimi) and other products.
Sales: USD 41 million (approximately 4.3 billion yen) (FY2007 results)
(Acquisition of 25% of GFC shares)
In the United States,
the U.S. Fisheries Law prohibits foreign capital from holding more than
25% of all shares of a fishery company. Therefore, 25% is the maximum
shareholding allowed to a Japanese company.