Sea Harvest has agreed to sell its dairy subsidiary, Ladismith Cheese, to Fairfield Dairy, a unit of Woodlands Dairy, for up to R850 million in cash. The deal aims to reduce debt and refocus the company on its core seafood operations. Woodlands Dairy will expand its production capabilities and national presence through the acquisition.
Sea Harvest Group announced the sale of Ladismith Cheese Company to Fairfield Dairy, a wholly owned subsidiary of Woodlands Dairy Group, in a transaction valued at an enterprise value of R840 million, capped at R850 million after adjustments for working capital and net debt. The all-cash deal is part of Sea Harvest's strategy, outlined earlier in 2025, to reduce its debt by 50% over three years by divesting non-fishing assets. Proceeds will directly repay long-term debt in its South African operations.
Ladismith Cheese reported a profit after tax of R32 million for the six months ended June 2025, with a net asset value of R980 million. Despite its strong performance, the sale allows Sea Harvest to concentrate on its primary South African Fishing Group, which generated 64% of group revenue in the first half of 2025. The fishing segment saw a 15% increase in hake catch volumes and 10% higher international selling prices, contributing to an improved net debt-to-EBITDA ratio of 2.1 times from 2.5 times in December 2024.
Sea Harvest CEO Felix Ratheb stated: “In line with the strategic objectives presented to shareholders in early 2025, Sea Harvest intends deleveraging its balance sheet through the disposal of non-fishing assets, and refocusing on its seafood businesses.” Prior to completion, Ladismith will be restructured as a direct subsidiary of Sea Harvest.
For Woodlands Dairy, the acquisition enhances its footprint in the Western Cape and deepens expertise in cheese, butter, and milk powder. CEO Helen McDougall noted: “aligns perfectly with our vision to deliver high-quality, sustainable dairy products to a growing market.” The deal positions Woodlands as the largest wholly South African-owned dairy company, with 25% black ownership. It employs about 580 staff, and operations, including brands and workforce benefits, will remain stable post-acquisition.
The transaction is subject to suspensive conditions, including lender approvals by 15 January 2026 and Competition Authority approval by 31 March 2026. South Africa ranks second in Africa for per-capita cheese consumption at 5.5kg per person annually, driven by demand for affordable processed products.