Sanford may buy newly formed Skeggs unit

Sanford moves on Skeggs fishing empire, seeks clearance to buy Pacifica Seafoods

By Jonathan Underhill

Sept. 29 (BusinessDesk) – Sanford Ltd. sought antitrust clearance to buy Pacifica Seafoods Group, adding to acquaculture assets it acquired from Sealord a year ago.

The transaction would signal a move in strategy for the Dunedin family of Sir Cliff Skeggs, who founded the seafood, transport, maritime wine and tourism group that owns Pacifica. David Skeggs, managing director of the group and sole director of Pacifica, didn’t immediately respond to calls.

The Skeggs Group-owned company was registered in June.

No price or terms were given in the Commerce Commission statement released on the NZX. Pacifica sells mussels and farms salmon and oysters.

Sanford has been a vocal critic of the New Zealand mussel industry, which it has accused of driving down prices as producers undercut each other. Mussels contributed to a 79% drop in the company’s first-half earnings.

Sanford’s export earnings prefer the tailwind of a weak kiwi dollar and managing director Eric Barratt called for a tax on speculative currency trading in January last year, having seen the New Zealand dollar climb from below 50 U.S to over 70 cents in little more than nine months.

Skeggs is controlled by the family, with three Skeggs among the six directors, who include Ian Farrant and Rod Grout.

(BusinessDesk)

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