Sealord gives acquired Independent Fisheries a long way to remaining independent

Integrating IFL into Sealord’s operations while respecting its 70-year identity and family values ​​helped speed up Sealord’s acquisition negotiations and Paulin says the company is keeping its word.

“I was in Christchurch (at the IFL) and I went down to where they stop for morning and afternoon tea and there’s this big Tupperware of scones and sausages. I said, ‘Where did that come from?’ They said, ‘We’ve got someone who cooks them.’ I said, ‘You mean someone brings them in?’ They said, ‘No, she works for us.’

“They said, ‘Is that OK?’ I said, ‘Yes, I think that’s a great idea.’”

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

Paulin says IFL, a business founded by three generations of the family in 1954, originally ran a fish and chip shop but is now “in every respect” an independent business.

“Yes, it’s part of our group, but when we do branded clothing (for example), it’s the IFL brand, and right underneath that is Sealord. It’s an identity for both, but we still keep the brand and all the good things that come with it.

“We told Mark Allison (former IFL managing director) and his team that was our intention when we made the offer. I think that was one of the reasons they decided to work with us. I think the other offers were either full integration or breaking it up into pieces.”

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

“I think Howard and Charles would be very happy with Sealord’s initiative and the board’s directive to maintain the ethos of the company, so that it is effectively run independently of Sealord’s operations, thereby preserving those values,” Allison said.

How much Sealord paid for the IFL, which was awarded a deepwater quota package of 46,000 tonnes including hoki, is confidential.

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

Paulin says Sealord’s fiscal 2024 revenue, including the IFL business, will be close to $600 million. Last year, it was just under $450 million, he says.

IFL employs about 28 people on land and more than 500 at sea. The average length of service is 15 years, Paulin says. They are increasing Sealord’s workforce to 1,800.

The transaction with IFL was not Paulin’s first experience in this field, but as he himself says, it was the most complicated.

One reason is the fact that 50% of Sealord’s shares are owned by foreign entities.

“It took a long time, longer than I thought. I learned a lot in the process.”

Apart from Rangiaho, the local baker, are there any surprises?

“I always thought our cultures were similar, but the great thing is how well our people have fit in, and they’re saying the same thing. There’s been great feedback. We’ve probably found a little bit more benefit in some synergies in some areas of the business, that’s been a nice surprise.”

As for fishing results, Paulin says it’s too early to measure them. Squid, the first species to be caught under the new ownership structure, has been volatile, and the all-important hoki season is about to start. The hoki season lasts six weeks, and the takeover results will be clearer then, he says. But so far, the business plan is sound.

Meanwhile, commercial fishing remains a tough game.

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

“We have higher costs and the pressure on price margins is decreasing.

“I think we’ll see that in the next few months in the government’s tax revenues.”

Former Sealord commercial director, Cantabrian Tim Mackay, is managing director of the IFL.

Mackay says that all IFL employees at the time of the takeover were retained by the company and that there have been very few changes at IFL “because we run Independent (Fisheries) as a standalone subsidiary of Sealord”.

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

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