Richlister Anthony Hall’s Yumbah Aquaculture makes major mussel acquisition

A company backed by an Aussie richlister has bought premium mussel producer Eyre Peninsula Seafoods, which produces the Boston Bay and Kinkawooka brands.

Yumbah Aquaculture chief executive David Wood. Picture Supplied

Yumbah Aquaculture has bought Australia’s largest mussel farmer and processor – Eyre Peninsula Seafoods – as it continues on its mission to be Australia’s leading shellfish aquaculture producer.

Port Lincoln-based Eyre Peninsula Seafoods is being purchased for between $15m and $20m, with the deal to increase Yumbah’s turnover by about 30 per cent.

Yumbah, which is backed by richlister Anthony Hall, who co-founded Pro Medicus, now has mussel operations in Victoria and SA, growing more than 2600 tonnes yer year, four abalone farms across Tasmania, Victoria and SA, and produces oysters and oyster spat across three states.

It also has a 37.5 per cent holding in ASX-listed Sydney rock oyster producer East 33.

Eyre Peninsula Seafoods produces mussels under the Boston Bay and Kinkawooka brands and sells more than 2300 tonnes per year.

The company’s owners and managers, chief executive Mark Andrews and executive director Andrew Puglisi, will remain with the business following the transaction, as will all current staff.

Mark Andrews and Andrew Puglisi from Eyre Peninsula Seafoods.

Yumbah chief executive David Wood said it was a significant and strategically important transaction for the company.

“We’ve been talking with Mark and Andrew for some time and have been impressed with their foresight to develop not only the water space to grow the product, but also a major processing facility that supports quality mussels reaching consumers around the world,’’ Mr Wood said.

“For us it’s a great acquisition. We’re looking to build Australia’s leading shellfish aquaculture company and to do that we wanted a balance in the portfolio between the species that we have, the abalone and the oysters and the mussels.

“We were underweight in mussels and the fit with Eyre Peninsula is fantastic. It’s a well managed business, it’s got great scale, it’s profitable, it’s got a good customer portfolio and it complements our portfolio and balances it out really well.’

Mr Wood said there was growth potential in the Eyre Peninsula business, reflected in an earn-out component for the vendors.

Kinkawooka Mussels. Picture: Supplied

“We’ll look to support that growth and with the ability to market multiple species that will help Yumbah’s overall growth ambitions as well.’’

Mr Wood said there was plenty of scope to expand the mussel sector broadly.

“It’s a shellfish that you can eat at all times of the year, in summer with a glass of wine, during winter with a stout or a beer.

“It’s a product which I don’t think people really understand the sustainability angle around as well.

“They are filter feeders and they fit very well within the environments where they grow, they’re easy to cook so I think there’s plenty of scope to increase the market penetration.’’

Eyre Peninsula Seafoods’ Mark Andrews said the transaction provided the ability to accelerate growth plans as part of a larger and broader shellfish business.

“Yumbah is a recognised innovator and committed to sustainability and growth, and the company’s recognition as an Above and Beyond producer by the Aquaculture Stewardship Council reflects Yumbah’s values, which strongly align with ours,” he said.

“It’s an exciting moment for two businesses with operations in Port Lincoln, but also as two South Australian-based companies with a global shellfish outlook.”

Post-transaction the revenue of Yumbah would be slightly north of $70m, Mr Wood said.