Tuesday, September 21, 2010

Carlyle's Chinese Seafood Investment

Corporate Treasury News reported:

Dennis Chan looked excited. The financial controller of Pacific Andes International Holdings, a Hong Kong-listed global seafood conglomerate, had just closed a $190 million private placement with The Carlyle Group to fund expansion – the latest in the company’s plans to grow.

“The investment will allow the entire group to expand,” he said. “We are targeting expanding our fishing rights in Peru and in Africa – all over really.”

Pacific Andes has grown rapidly during the past decade, reporting a compound annual growth rate of 21% since 2000, as it acquired and built up operations ranging from fishing, packaging to distribution around the world.

Pacific Andes has China Fishery as a subsidiary corporation. Carlyle's recent investment went through China Fishery. A Pacific Andes press release stated:

In July 2010, China Fishery completed a private placement of 113.5 million new shares and 26.7 million warrants to The Carlyle Group. The gross proceeds of US$150 million (HK$1,170 million) will be used primarily for strategic acquisitions and to acquire additional fishing quota.

The deal combined the largest private equity underwriter (PEU) with "the world’s largest fishing group, the largest supplier of frozen fish and the world’s largest fish fillet producer."

As it will soon own NBTY, the huge vitamin/supplement maker, The Carlyle Group can double ring the register on your next fish oil tablet.