Cape Town, South Africa: Lonrho has agreed to acquire a 51% equity interest in seafood wholesaler Fish On Line for ZAR3.5million (£0.3m) in cash.
Cape Town-based Fish On Line operates bulk cold storage and fish processing facilities. It is a seafood wholesaler, importing and exporting produce worldwide. Lonhro and Fish on Line expect to enter into a definitive share purchase agreement that will also include a formula for the acquisition of the remaining 49% of the company, within the next few weeks.
Following completion, Lonrho will provide working capital for the company to expand its existing operations and broaden its product range. Fish On Line sells to catering and retail sectors and products handled include: prawns, salmon, pangasius, hake and kingklip.
Fish on Line was set up 1999 and unaudited turnover for the year ended February 2011 was ZAR66m (£5.8m). David Lenigas, Lonrho’s executive chairman, says: “The acquisition of Fish On Line strengthens Lonrho’s participation in the seafood sector and delivers beneficial synergies with Lonrho’s Oceanfresh, which is seeing a strong demand for its sustainably sourced, wild caught fish range from retailers globally.”
UK-based Lonrho bought 51% of Johannesburg-based Oceanfresh Seafood in June 2010. Lonrho is active in the fish sector in South Africa and Namibia, seeing it as a market with strong growth potential in Southern Africa and internationally.
