Looks like we're about to see more processor consolidation at Bristol Bay, home of the state's most valuable sockeye salmon fishery.
Snopac Products Inc. today sent the following email to its fishermen announcing the company's pending sale to Icicle Seafoods Inc.
From: Jenna Hall
Date: Tue, Feb 28, 2012 at 1:03 PM
Subject: Snopac Update
Dear Snopac Fishers,
It has been a busy winter for us here at Snopac and we are writing to bring you up to speed on some significant developments to our 2012 plans and fishing operations.
Tomorrow, a press release is going to be issued by Icicle Seafoods regarding their intention to buy Snopac (we have attached a copy to this email for you to read prior to its release). We have signed a Letter of Intent with Icicle, and are now in the midst of a customary "due diligence" process that will take several weeks. Hopefully the sale will close as both parties intend, however until that happens, it is not final.
Should the sale finalize, we will do everything we can to ensure a smooth transition for our fishers and tenders. There will be many operational details to be sorted out and both Icicle and Snopac intend to do so with the most positive impact for our fleet.
Should the sale not finalize prior to the season, we have made arrangements with Icicle to jointly operate in Bristol Bay in 2012 by consolidating resources and expanding services, which will benefit both our operation and our fleet. Icicle is a very competitive market who boasts short tender lines, great offload capacity and high limits. Working with them will give our fleet access to these benefits.
Either way, you can be assured that you have a competitive market in 2012. In addition, Snopac will be announcing a 2011 retro shortly and we will also be coming out with pre-season logistics as far as northbound freight and other timely issues.
Ben and I will be making telephone calls to each of you to personally address any questions or concerns, but feel free to call Greg, Jenna or Ben at anytime.
Thank you for your fish and your continued support.
All the best,
Jenna Blakey Hall
Snopac Products Inc.
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