Above: Quinlan Brothers Fish plant in Bay de Verde, N.L.
The shareholders of Newfoundland-based Quinlan Brothers Limited recently announced they have decided to sell their interests in the company to Royal Greenland A/S.
In a press release, the shareholders of Quinlan brothers said they felt that it was in the best long-term interests of the company and those associated with the business, for them to transition their ownership at this time. Quinlan Brothers Limited currently operates three processing plants in Bay de Verde, Old Perlican and Baie Verte.
“The shareholders intend to conclude the sale of Quinlan Brothers Limited to Royal Greenland A/S following government approval of the processing license transfer and detailed due diligence process.”
The sale is planned to close later this year following the end of the processing season.
“It is the intention of the shareholders and Royal Greenland to maintain the legacy of Quinlan Brothers Limited. The company’s operations in the province will be sustained and operated as normal. Robin Quinlan, president, will continue with the company, managing the business. The transition of ownership will ensure the company’s management, employees, suppliers and customers are served as in the past,” the company stated.
Quinlan Brothers Limited has had a long-standing relationship with QuinSea Fisheries Limited. Both companies shared common ownership for many years until the owners of QuinSea sold their interests to Royal Greenland in 2016.
Both companies have continued to have joint ownership interests in other fish processing operations in the province (Gulf Shrimp Limited and Independent Fish Harvesters Inc).
“The shareholders wish to sincerely thank all its employees and suppliers for their loyalty and dedication to the company over the past decades. The owners have successfully rebuilt the assets to ensure the company is at the leading edge competitively. The shareholders are confident that the legacy of the company can be sustained and the transition of ownership will demonstrate business as usual for all those connected with the company.”
However, the FFAW-Unifor is raising the alarm following the news that Royal Greenland has proposed to purchase Quinlan Brothers Limited.
If approved, the Newfoundland and Labrador-owned company would come under the control of Royal Greenland, a company owned by the Government of Greenland, raising concerns surrounding corporate concentration and controlling agreements in the province, the union said in a press release.
“Harvesters and plant workers alike are rightfully concerned that fewer companies will exacerbate the cartel-like behaviour exhibited in recent years,” said FFAW-Unifor President Keith Sullivan.
“This corporate collusion has meant that processing capacity, market development and rural economic development has taken a back seat to the profits of a few corporate executives,” Sullivan added.
“Over the past seven years, just five large fish processing companies have purchased dozens of smaller processing companies in the province. Some of those smaller companies purchased remain in operation, while many are shuttered. In 2016, Royal Greenland acquired Quin-Sea, further diminishing the number of Newfoundland and Labrador-owned processors in our province,” the union explained.
“Many are questioning the sale given Quinlan Brothers’ explicit involvement in the establishment of controlling agreements, which provides processing companies with control over inshore fishing licenses, contrary to federal policies and soon federal law. Quinlan Brothers has admitted its involvement in controlling agreements and argued unsuccessfully in federal court on two occasion for greater processor control of inshore licenses. The FFAW-Unifor and fish harvesters throughout Canada have demanded urgent enforcement of illegal controlling agreements by processing companies that are undermining the rural economy and preventing the next generation of harvesters from entering the fishery,” the union press release went on to say.
“FFAW-Unifor has long asserted that the federal and provincial governments must enforce the owner-operator and fleet separation policies to protect the inshore fishery and our coastal communities. We raised this concern in 2016 when Royal Greenland purchased Quin-Sea and our concerns were not heard. This time we have explicit evidence of Quinlan’s involvement in controlling agreement and this needs to be fully investigated before a processing license can be transferred,” said Sullivan.
“We need less corporate concentration, more processing licenses in the hands of different companies and more competition in the industry. This sale of a Newfoundland and Labrador-owned company does nothing to ensure long-term sustainability of the inshore fishery for people living and working in our province.”
