Whangamata Seafoods Ltd for sale
Returning staff help preserve processing skill levels at Whangamata Seafoods. Photo / Supplied
A diverse Coromandel-based seafood business that has been built up over many years, is now for sale.
Established by its present owners in the 1970s, Whangamata Seafoods Ltd, processes scallops from two quota areas
ABC brokers Linda Harley and Warren Chamberlain, say the longtime owners have decided it is time to sell-up and move on to retirement, creating a rare opportunity for prospective buyers.
“It’s a diverse company that owns scallop quota, as well as processing, selling and distributing them for the domestic market,” Harley says.
“Major clients include Foodstuffs and Progressive supermarket groups, along with private clients in the catering sector,” she says.
“The owners are offering the entire business — including scallop quota, land, buildings and equipment to market and, above all, unsurpassed good will that’s been built up over many years — to the market.
Chamberlain says that present sales are focused within the domestic market, including retail and wholesale clients.
“The annual business turnover is in excess of $1.3m but a new owner should have ample scope to grow this in future.”
He says courier delivery on a daily basis ensures distribution to clients such as New World and Countdown Supermarket groups as well as specialist seafood providers.
The business is for sale for $2,050,000 and may be sold separately to the land and buildings.
Harley says this type of business seldom comes to the market. “There’s undeniable growth potential here because this company is export-certified, a fact bound to engage a buyer with a vision for development of an off-shore market.”
Harley says processing is completed in the purpose-built facilities located at 112 and 114 Wattle Place, Whangamata. The land and early-1980s-vintage buildings for sale at these addresses occupy two freehold titles:
- 112 Wattle Pl includes the processing area, blast freezers and main office. The 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 quotable valuation is $570,000.
- 14 Wattle Pl is used for packaging material, having additional space for future expansion if required. The land area is 350sq m, with building area of 263sq m, including the boardroom and storage areas. The quotable valuation 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 of the year and volumes are managed in consultation with the Ministry of Fisheries.
“Whangamata Seafoods Ltd general manager, Peter Sopp, is the sole employee of the company. Peter is providing an extended handover period to ensure smooth transition and all business connections and contacts are transitioned across to the new owner.”
Chamberlain says Whangamata Seafoods Ltd is 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, which completes the shucking process with skill and speed. Many have returned year-after-year offering continuity of the skill within the team.”