Trident Seafoods, which in December announced a restructuring involving layoffs at its headquarters and the sale of four processing plants in Alaska, has now said it is close to closing sale agreements for three of them.
Photo: Trident Seafoods.
Three of the four Alaska plants on which Trident Seafoods hung the 'for sale' sign last December are now entering the final stages of closing sale agreements. These are the Petersburg, Ketchikan, and False Pass plants. For the fourth, the one in Kodiak - larger and more complex than the previous ones - talks are continuing, although the company said there are multiple parties interested in it.
"Bold action today is necessary to deliver fair value to fleet, communities, and all stakeholders into the future." This is how, in December, Joe Bundrant, CEO of Trident Seafoods, argued the company's decision to sell four of its Alaskan plants. A sale, he explained at the time, aimed to rationalize the company's operations in Alaska and also reorient its global business strategy.
Now, Trident acknowledged the information has been sparse since the announcement of the sale but justified this by the non-disclosure agreements to which interested parties are bound once they enter into negotiations. "We know this is an unsettling time, but the company has not been standing still," said Jeff Welbourn, Senior Vice President of Alaska Operations. "We’re moving as quickly as possible to minimize the impacts on the fleet, our employees, and the communities."
The company maintains that efforts to sell the plants are backed by a desire to secure buyers who share the company's values. "We have been intentional about finding buyers who will take great care of the fleet and employees and who will integrate themselves into the communities," insisted CEO Joe Bundrant in the company's most recent statement.
For the seasonal plants in Petersburg, Ketchikan, and False Pass it appears that this goal has been achieved, negotiations are in their final stages and Trident is close to finalizing sales. "These are relatively simple, straightforward transactions, and we’re simplifying the deals to facilitate closing as quickly as possible," said Welbourn.
"We are keenly aware of the upcoming salmon season, and we are confident that the buyers, with Trident’s support, will be able to communicate with the fleet, employees, and tenders in the coming weeks," added the Senior Vice President of Alaska Operations.
From the beginning of the sale process, Trident was confident that these three processing plants would be easy to sell as they aligned well with other operators' strategies. However, in the case of Kodiak's facility, it assumed that - as a larger and more complex plant, with year-round operations supporting multiple species - it would be more complicated.
In its latest statement, Trident Seafoods confirmed that the specific complexity of the Kodiak processing facility makes this a lengthy due diligence process, but it is already talking to multiple buyers interested in the plant. In addition, the company has also sought to reassure its employees and the fleet.
"Even if we don’t close a deal by this summer, Trident will still provide a market for salmon season in Kodiak," claimed Welbourn. "This means that our employees and fleet are secure, and we will share a tender strategy soon," he added. The company maintains it is committed to Alaska for the long term, and finding the best solutions for these plants is important to this.
"We care deeply about the fishermen and communities. Their success is our success," said Bundrant. "Consolidating our operations allows us to focus reinvestments and ensure we’re able to positively contribute to the Alaska seafood sector for many years to come," concluded the CEO of Trident Seafoods.
Trident Seafoods is a privately held, 100 percent USA-owned company, the largest vertically integrated seafood harvesting and processing company in North America. Headquartered in Seattle, Washington (USA), it has global operations in 6 countries and serves customers in almost 60 countries, employing some 9,000 people worldwide each year, and collaborating with more than 5,400 independent fishermen and crew members.