Whangamata Seafoods Ltd for sale
A diverse Coromandel-based seafood business is on the market for sale, after being built up over many years.
Established by its present owners in the 1970s, Whangamata Seafoods Ltd processes scallops from two quota areas. However, ABC brokers Linda Harley and Warren Chamberlain say the longtime owners now see it as time to retire, creating a rare opportunity in the industry.
Harley says it is a diverse company that owns scallop quota, as well as processing, selling and distributing scallops for the domestic market.
“Major clients include Foodstuffs and Progressive supermarket groups, along with private catering clients. The owners are offering the entire business — including quota, land, buildings, equipment and good will — to the market.
“Much potential exists for gowth as the company is export-certified.”
Processing is done in the purposebuilt facilities at 112 and 114 Wattle Pl, Whangamata. The land and early1980s-vintage buildings for sale there occupy two freehold titles:
● 112 Wattle Pl includes the processing area, blast freezers and main office. Land area is 699sq m, with a total-floor-area of 332sq m, including the kitchen, freezers, processing area and loading dock for waste disposal. The QV is $570,000.
● 114 Wattle Pl is used for packaging material, with space for expansion if required. Land area is 350sq m, with building area of 263sq m, including the boardroom and storage areas. The QV is $445,000.
The two properties are available to purchase for a combined price of $1.2m, offering a return on investment of 6.6 per cent.
Harley says the harvesting and processing season is about six months and volumes are managed in consultation with the Ministry of Fisheries.
“Whangamata Seafoods general manager Peter Sopp is the sole employee of the company. He is providing an extended handover period to ensure smooth transition. Business connections and contacts will transfer to the new owner.”
Chamberlain says Whangamata Seafoods would be ideally suited to an astute investor, who understands the value of fishing quota and sustainable fishery management.
“During the season the business employs a team of skilled seasonal employees, for shucking. Sales now focus on the domestic market, from which turnover is in excess of $1.3m pa — but a new owner should have ample scope to grow this.”
Chamberlain says courier delivery on a daily basis ensures timely distribution to clients. The business is for sale for $2.05m and may be sold separately to the buildings.