CO2 Group wraps up $11.2m Seafarm buyout

Ian Trahar’s CO2 Group has taken another step towards becoming one of the nation’s largest aquaculture players, putting the finishing touches its $11.2 million takeover of Queensland prawn growing company Seafarm.

The transaction was initially announced late last month, with CO2’s wholly owned subsidiary, Western Australian Resources Limited, signing agreements to acquire Seafarm, the nation’s largest prawn aquaculture business.

The purchase price will comprise a $7 million payment upon completion of the deal, with two further $2.1 million payments to occur in 2015 and 2016, respectively.

Established in 1984, Seafarm produces prawns which are sold under the Crystal Bay brand.

CO2 said the acquisition would bolster its plans to develop its $US1.25 billion Project Sea Dragon business, which is based on developing a world class land-based prawn farm in the north of the state.

Prefeasibility work for Project Sea dragon is under way at a 5 hectare facility near Exmouth.

WARL paid $500,000 to acquire the aquaculture facilities that were originally owned by Marine Farms in September last year, and has since spent around $300,000 upgrading the site.

The acquisition is expected to be earnings positive in the current financial year, CO2 said, with growth set to come from converting the operations to grow Black Tiger prawns.

At close of trade today, CO2 Group shares were down 6 per cent, at 6.3 cents.