Acquisition boosts Angel’s oyster finishing capacity to 10 million per year
Angel Seafood will sell its Smoky Bay assets to acquire extra holdings at Coffin Bay.
Angel Seafood Holdings has entered into an agreement to acquire an extra 1.5 hectares of water in Coffin Bay and is also divesting its assets in Smoky Bay.
The Coffin Bay acquisition will increase Angel’s water holding in Coffin Bay to 12.25 hectares, as well as boosting the company’s finishing capacity to 10 million oysters per year.
The $600,000 acquisition consists of one hectare in the highly productive Central Zone at Coffin Bay, which will be used for conditioning oysters for sale, and 0.5 hectares in Kellidie Bay, to expand grow out areas.
It has an expected payback period of 2.5 years and will be funded from Angel’s cash flow, including the disposal of non-core assets.
Angel has also entered into agreements of sale to dispose its assets in Smoky Bay consisting of 1.3 hectares of water leases and on-land infrastructure and equipment, for a total of $450,000.
Angel chief executive and founder Zac Halman said the Smoky Bay leases were part of the initial Angel operations, but due to the effectiveness of the Cowell and Coffin Bay growing areas, the leases were now considered non-core.
“The acquisition of additional good quality water in Coffin Bay is another important step in delivering our growth ambitions and strengthens our multi-bay operations between Coffin Bay and Cowell,” he said.
“The disposal of Smoky Bay assets is driven by our strategic intent to focus our multi-bay strategy on Cowell and Coffin Bay, while also optimising our capital allocation.”