Wed, 07 Aug 2024 | BUSINESS SALE
A Devon-based processor of British crab has been acquired in a rescue deal after falling into administration earlier this month. Blue Sea Food Company, which is focused on buying, processing and selling crab, collapsed following a period of challenging trading conditions in the wake of the COVID-19 pandemic.
The Paignton-based company had suffered as a result of headwinds including cost inflation and the cost-of-living crisis, which placed pressures on its working capital.
For the year ending April 30 2023, the company reported turnover of £13.5 million, roughly consistent with £13.8 million the previous year, but saw its gross profit margin decrease from 35.8 per cent to 32.9 per cent, which was attributed to higher raw material costs, largely resulting from increased fuel prices in the wake of the war in Ukraine.
The company also faced increased wage and salary costs in the midst of a “tightening labour market” and an increase in the National Minimum Wage. This confluence of factors led to EBITDA decreasing from £1.2 million to slightly under £500,000.
As a result of the company’s challenges, Kroll Advisory were appointed as administrators of Blue Sea in early August. The administrators have now completed a sale of the company’s trade and certain assets to New England Seafood International (NESI), a UK-based seafood importer and processor with bases in Surrey and Grimsby.
The acquisition secures Blue Sea’s supplier relationships and more than 160 jobs, as well as providing a boost to crab fishers in the South West and the wider British crab market. Many customers rely on Blue Sea for regular supplies of British crab.
Dan Aherne, CEO of NESI owner Woocheen Global Seafood, commented: “We have been really impressed by the passion and energy of the Blue Sea team for promoting British crab in the UK and around the world. Blue Sea Food is a great business but it suffered under too high a debt burden.”
"We are pleased to have been able to move quickly, working constructively with Kroll to secure all jobs at the Paignton operation and look forward to supporting the team there and working closely with the suppliers and customers of the business to forge a successful future for Blue Sea under NESI ownership."
Read more about M&A trends in the UK seafood industry
Click here to download our free guide on finding and buying distressed businesses and assets
Prime location business located in historic harbour area in Devon. Jaw dropping premises with immense charm and personality.
FREEHOLD
An extremely rare opportunity to acquire a waterside freehouse pub in one of the most sought after coastal village locations in the region. This historic and characterful Grade II Listed property is understood to have originally been constructed arou...
Located in a delightful semi-rural country setting in the very heart of this traditional Devon village of Hemerdon, lying on the southern boundaries of Dartmoor National Park and on the outskirts of the major South Devon city of Plymouth. From its sl...
FREEHOLD
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.