Sealord gives acquisition Independent Fisheries a long line to maintain independence

With the recent buy of major family fishing business Independent Fisheries, Sealord has become the country's biggest commercial fishing company.

As an example of untypical corporate post-acquisition behaviour, take Moana Rangiaho, scone baker extraordinaire.

Or rather, don’t take her.

Sealord, New Zealand’s biggest commercial fishing business, wouldn’t dream of taking Rangiaho from her post as in-house chef and baker at Independent Fisheries (IFL), the major Canterbury fishing company Sealord acquired in January.

Chief executive Doug Paulin says it was a surprise learning Rangiaho, at IFL for 13 years, not only does admin but bakes morning and afternoon teas for staff on Tuesdays and Thursdays in IFL’s commercial kitchen and holds barbecues on Friday.

But he won’t change the arrangement.

Incorporating IFL into the Sealord business while respecting its 70-year-old identity and family values helped move Sealord’s winning offer along when negotiating the acquisition, and Paulin says the corporate is being true to its word.

Moana Rangiaho is the in-house baker and chef at Independent Fisheries and new company owner Sealord won't change that.

“I was in Christchurch [at IFL] and went downstairs where they stop for morning and afternoon tea and there’s this big Tupperware container of scones and sausage rolls. I said, ‘where did that come from?’ They said, ‘we have someone who cooks them’. I said, ‘you mean someone drops them off?’ They said, ‘no, she works for us’.

“They said, ‘is that okay?’. I said, ‘yeah, I think it’s a great idea’.

“It’s part of who they are and what they do. What a great thing to do ... you just wouldn’t think of changing it, even though obviously there’s a cost involved.”

Paulin says IFL, built by three generations of family from a fish and chip shop in 1954, is today “to all intents and purposes” an independent company.

“Yes, it’s part of our group but when we do branded clothing [for example] it has the IFL brand and just underneath it is Sealord. That’s an identification for both but we still retain the brand and all the good stuff that goes with that.

”We did tell Mark Allison [former IFL managing director] and his team that was our intention when we made an offer. I think that was part of the reason they chose to go with us. I think the other offers were either full integration or break it up into pieces.”

Allison, son-in-law of Charles Shadbolt, who is the son of IFL founder Howard Shadbolt, QSM, said six months on from the deal, the family is “very proud and certainly not disappointed” with the result.

“I think Howard and Charles would have been very comfortable with Sealord’s initiative and the directive from the board to keep the ethos of the company so that it’s run effectively independent from Sealord operations to maintain those values,” Allison said.

What Sealord paid for IFL, which came with a 46,000 metric tonne deep sea quota package, including hoki, is confidential.

Nelson-based Sealord is half owned by Māori through 57 iwi through Moana New Zealand, and half owned by Japanese company Nissui.

Sealord CEO Doug Paulin says Independent Fisheries “to all intents and purposes” remains an independent company.

Paulin says Sealord’s FY24 revenue, incorporating the IFL business, would be close to $600 million. Last year it was just under $450m, he says.

IFL employs about 28 people on land, and more than 500 at sea. The average tenure is 15 years, Paulin says. They bring Sealord’s workforce to 1800.

The IFL deal wasn’t Paulin’s first acquisition experience but he says it’s the most complicated.

Part of the reason for that is Sealord’s 50% foreign ownership.

“It took a long time, more time than I thought. I’ve learned a lot through the process.”

Other than Rangiaho, the in-house baker, any surprises?

“I always thought our cultures were similar but a great outcome is how well our people fitted in, and they’re saying the same. There’s been great feedback. We probably found a little more upside in some of the synergies in some areas of the business, that’s been a pleasant surprise.”

In terms of united fishing results, Paulin says it’s too early to measure. The squid catch, the first species fished for under the new ownership structure, has been volatile and the all-important hoki season is about to kick off. Hoki is a six-week season and outcomes of the acquisition will be clearer then, he says. But so far, the business case is being satisfied.

Meanwhile, commercial fishing continues to be a tough game.

“Our costs are still high, not dissimilar to the agriculture [situation]. The complexity to operate in New Zealand is high, regulations and compliance are still difficult and the global economy for exporting companies is still difficult.

“You’ve got higher costs and pressure on price margins is getting squeezed.

“I think you’ll see that in the Government’s tax take in a few months.”

Sealord’s former commercial manager and Cantabrian Tim Mackay is IFL’s managing director.

Mackay says all IFL staff at acquisition time were retained and there’s been very little change for IFL “as we run Independent (Fisheries) as a standalone subsidiary of Sealord”.

The deal meant IFL’s three 104m vessels joined Sealord’s fleet of six. Two IFL vessels, Independent and Irvinga, were owned by IFL, and the third boat Mainstream is chartered.

Andrea Fox joined the Herald as a senior business journalist in 2018 and specialises in writing about the $26 billion dairy industry, agribusiness, exporting and the logistics sector and supply chains.