Norwegian-owned Scottish Sea Farms has agreed to acquire Shetland and Skye-based Grieg Seafood Hjaltland UK from its Norwegian parent Grieg Seafood ASA for £164 million.

Stirling-based Scottish Sea Farms – co-owned 50-50 by Norwegian firms Lerøy Seafood Group and SalMar ASA – said the deal will help it “deliver optimal biological performance and help meet rising demand for premium quality, Scottish-grown salmon.”

SalMar said the transaction will be funded with external debt and new equity from the owners.

“With operations on Shetland and the Isle of Skye, Grieg Seafood Hjaltland UK currently operates 21 marine farms, a freshwater hatchery and a processing facility, harvesting approximately 16,000 tonnes (HOG) of Atlantic salmon in 2020,” said

“This complements the geography and nature of Scottish Sea Farms’ own operations which are located across mainland Scotland, Shetland and Orkney and produced approximately 24,000 tonnes (HOG) of Atlantic salmon in 2020.”

Scottish Sea Farms CEO Jim Gallagher said: “As farmers, we are constantly striving to create the best growing conditions for our salmon.

“The purchase of Grieg Seafood Hjaltland UK is a landmark step in our long-term strategy, giving us greater influence over several key biological factors including fish health, stocking regimes and sea lice management.

“We’re very much looking forward to pairing the skill and know-how of our existing farming and fish health teams with the local expertise within Grieg Seafood Hjaltland UK, working as one to benefit fish welfare and boost survival.

“This, in turn, will ensure a more secure and stable supply of salmon for our discerning customers the world over, helping satisfy the insatiable demand for this highly nutritious, low carbon food.”