Scottish Sea Farms has signed a share purchase agreement to buy all the shares in Grieg Seafood Hjaltland UK from Grieg Seafood for $226m (£164m).

Grieg Seafood Hjaltland UK operates 21 marine farms, a freshwater hatchery and a processing facility.

With operations on Shetland and the Isle of Skye, Grieg Seafood Hjaltland UK harvested nearly 16,000t of head-on-gutted (HOG) Atlantic salmon last year.

The acquisition is part of Scottish Sea Farms’ strategy to meet the increasing demand for Scottish-grown salmon.

Equally owned by Lerøy Seafood Group and SalMar, Scottish Sea Farms stated that the acquisition of Grieg Seafood Hjaltland UK complements the geography and nature of its own operations, which are located across mainland Scotland, Shetland and Orkney.

It produced approximately 24,000t 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.”

Scottish Sea Farms intends to fund the deal with 100% cash consideration.

Completion of the deal is subject to approval by the relevant competition authorities and customary closing conditions. The deal is expected to close by Q4 2021.