With the purchase of Calvo, Dongwon seeks to advance its strategy to control the world tuna market. (Photo: Dongwon Group / Calvo / FIS)

Dongwon Group to bid on tuna company Calvo

Food and beverage company Dongwon Group is interested in acquiring Spanish canned tuna producer Luis Calvo Sanz, SA. (Grupo Calvo).

According to Money Today, Dongwon has submitted a letter of intent and been shortlisted as a potential buyer in the sale which started in late 2011. The two current potential buyers chose accounting advisors last month and are undergoing due diligence procedures.

Now that Dongwon has shown interest as a second buyer, Calvo intends to carry out bidding.

“Dongwon Group’s will and bargaining power are greater than the other competition so there is a strong chance that they will be chosen as the preferred bidder”, explained an individual connected to the sale, Private Equity Korea reports.

The sellers include one majority shareholder and a group of Spanish savings banks which together own a 22 per cent stake in Calvo. The sellers have picked Spanish boutique M&A advisories, Ahorro and Arcano to consult on the transaction.

The sellers are in total offering a controlling stake of more than 50 per cent. Once the bidder is chosen, the parties will determine the exact size and method of acquisition.

A 50 per cent stake in Calvo is estimated to be worth in excess of KRW 200 billion (USD 173.4 million).

Dongwon Group’s acquisition will be supported by a KRW 300 billion (USD 260.1 million) matching fund by Korea’s National Pension Service, which was promised last year.

Dongwon aims to become the world’s largest canned tuna producer. Its transformation began in 2008 with the acquisition of US firm Starkist Tuna from Del Monte Corporation and the subsequent purchase of Senegalese company Societe Nouvelle Conserveries du Senegal (SNCDS).

Back then, Dongwon announced its intention to achieve creative and proactive growth strategies to stimulate growth in the US tuna market and otherwise strengthen StarKist’s position as a market leader.

Dongwon is one of the world's largest tuna catching companies and owns 75 per cent of the canned tuna market share in Korea.

The Calvo Group is made up of 100 per cent Spanish capital and focuses on the fishing, production and sale of high-quality canned fish. It operates on five continents, exports to more than 60 countries and employs more than 4,000 workers.

In 2004, Calvo bought the leading Brazilian brand Gomes da Costa and became one of the top five canned food companies in the world.

Related articles:

- Calvo focuses its future business in Brazil, China, India and Russia
- Dongwon acquires Senegalese tuna cannery

By Natalia Real
[email protected]
www.seafood.media

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