Calvo’s Assests Estimated Between EUR 250 And Eur 350 Millionff
12 October 2006
Spain The Spanish Calvo Group’s current assets are valued between Eur 250 and Eur 350 million. The tuna group invoices a total of Eur 380 million per year and owns factories located in Spain, Morocco, Venezuela, El Salvador and Brazil. The company employs 3000 personnel and has reached fifth place within the world ranking of largest tuna company’s. The Calvo enterprise’ fleet counts with 6 tuna vessels, 2 support boats and 3 merchant ships to ensure raw material supply to Calvo’s factories.
Calvo is known in Spain as the cannery that introduced yellowfin tuna to the Spanish market. It began its operations in 1940 and when yellowfin products started to be commercialized, Calvo became the leader in the canning industry.
Its origin goes back to 1940 when Mr. Luis Calvo Sanz began to produce canned meat in a small factory located in Carballo, in Galicia, Spain. The first production of canned seafood took place two years later and, from that moment onwards Calvo’s trajectory has encountered many successes.
This family enterprise was pioneer in the launching of the “round-shaped tuna canâ€, and the famous “three-packâ€, now the standard for selling canned tuna in Spain. Today, 95% of all cans are round-shaped and 79% of Spain’s tuna consumption consists out of yellowfin.
Calvo’s investments go beyond Spain, in the towns of Carballo and Esteiro (Galicia). In 1993, the company initiated an international expansion, Calvo started canneries in Italy, Morocco, El Salvador, Venezuela and Brazil. In addition, the Spanish firm has also expanded its tuna fleet dedicated to yellowfin fisheries. Besides quality, one of the main assets of this canning company is its “CALVO†brand in Spain and the “ Nostromo†brand in Italy , strongly positioned in the market. Such brands are widely recognized in Spain among consumers.
According to experts, there are few possible international buyers. The first option would be the Italian Tuna Group Bolton Alimentari, which holds officially its home office in the Netherlands. Its Trinity cannery is integrated in the Bolton group and commercializes the Rio Mare brand. Bolton has recently acquired a part of the French group Saupiquet.
Another potential buyer is the Thai group Thai Union, whose leaders recently announced their disposition “to change shareholders†to penetrate the European Market. Thai Union is the world’s largest tuna producer, employing approximately 25,000 workers.
The two companies located in the United States which have sufficient capacity to acquire the Calvo Group could be Connors Bros. Income Fund, which owns Bumble Bee; or otherwise Trimarine, which is the world’s largest tuna trading company.
Within Spain, some experts only see possible Jealsa Rianxeira as potential buyer, a canning group that invoices annually almost Eur 325 million. However, it would be unfeasible to reach the investment needed to acquire the Calvo Group without the support of a major outside financial investor or supporter. Jealsa management already reacted by saying that a takeover of Calvo was not included in the company’s expansion plans.
