Silver Bay Seafoods acquires Icicle's 50% ownership stake in OBI

Silver Bay Seafoods and Bristol Bay Economic Development Corporation (BBEDC) jointly announced Tuesday a partnership they say "will increase stability for Alaskan fishermen and communities reliant on seafoods processing operations," with Silver Bay acquiring Icicle Seafoods' 50% ownership stake in OBI Seafoods.

The acquisition affects many processing facilities throughout Alaska, including Petersburg's OBI plant, one of the community's largest employers.

According to the March 18 announcement, Silver Bay will manage all OBI facilities and operations, which include plants in Petersburg, Seward, Larsen Bay, Egegik, Wood River, Cordova, Kodiak, and Naknek, as well as the Kent Warehouse and Labeling facility in Washington state.

In Petersburg's operation, leadership at the plant has been told to expect business as usual for this year's processing seasons.

"What we've all been told and are operating on, is to plan for 2025 - full steam ahead as usual," the Pilot was told by Laura McFadden, who recently joined OBI Petersburg as assistant fleet manager. McFadden returns to her hometown Petersburg after serving as the Egegik fleet manager at one of OBI's Bristol Bay salmon processing plants. She will be working closely with the Southeast fishing fleet alongside Petersburg fleet manager Don Spigelmyre and outgoing assistant fleet manager Kevin Timm, who has been with Icicle for the past 40 years and plans to retire next May.

The acquisition means Cook Aquaculture - which bought Icicle Seafoods in 2016 and became the 50% owner of OBI when it was formed through a merger in 2020 - is effectively exiting the Alaska wild salmon business.

BBEDC will maintain its 50% ownership share of OBI.

Despite the significant change to OBI's corporate structure, McFadden noted that the Petersburg plant continues to plan for normal operations this season, with no foreseeable plans for staff reductions.

"The Alaska staff, which would include everyone that works here, should expect to remain," McFadden said. "We've all been told not to feel like we're on the chopping block."

The Petersburg plant, which processes multiple species including salmon, halibut, and Dungeness crab, has a unique position within OBI's operations. McFadden noted it buys the most diverse range of species of any OBI facility, making it a valuable asset.

"This plant just makes sense. It makes sense for the industry. It makes sense for this community," McFadden said.

The Petersburg plant plans to maintain its diverse processing operations for the upcoming season with only minor adjustment, continuing its role as OBI's most diversified processing plant.

"As far as salmon, longline halibut, Dungeness, we intend to buy all species and process at capacity this year," McFadden said.

There is one change for 2025 that predates the acquisition announcement - the Petersburg plant will not process sac roe herring this season due in large part to limited market demand from Japan, McFadden explained, noting the herring decision was made well "before the acquisition announcement."

However, McFadden confirmed the plant will still handle herring roe on kelp. "We do that through a processing agreement with the fishermen, so we don't buy it from them, but we help process it and package it for them," she said.

Both companies acknowledge the OBI acquisition comes during a challenging period for Alaska's seafood industry.

"With the many challenges facing Alaska's seafood industry, BBEDC recognizes the importance of strategic partnerships to support Alaska's regional fishing economies," said Michael Link, CEO of BBEDC, in Tuesday's press release. "We are pleased to partner with another strong Alaskan company to achieve the efficiencies this industry needs to remain competitive in a global economy."

Cora Campbell, President and CEO of Silver Bay Seafoods, expressed similar sentiments: "This investment in OBI will allow us to serve more fishermen and communities. We plan to bring our fishermen focus, commitment to innovation, and operational excellence to this partnership to maximize the competitiveness of the Alaska seafood industry."

Petersburg's seafood industry stands out for its locally-based fleet. McFadden noted that Petersburg is among the top one or two fishing communities in Alaska where fishermen who fish there also live there year-round, contributing to the community's economic stability.

"Petersburg is such an interesting place because people aren't just involved in one fishery," McFadden said. "They're longliners. They crab. They do herring pounding... or they're salmon seining as well, or gill netting, trolling."

Compared to many commercial fishing communities, Petersburg has more year-round stability thanks to the fleet's participation in diverse fisheries throughout the year. The OBI Petersburg plant has been a big part of that being possible.

The full details of what the acquisition will mean for OBI's operations are still emerging, with more information expected by the end of March.

Silver Bay Seafoods, founded in 2007 as a single salmon processing facility in Sitka, has grown to become one of Alaska's largest seafood companies with thirteen processing facilities throughout Alaska and the West Coast. It is owned by 600 fishermen who supply the company with wild-caught, sustainably harvested seafood.

BBEDC is one of six community development quota organizations in Alaska that support economic development in 65 Western Alaska villages. It acquired a 50% interest in Ocean Beauty Seafoods in 2007, which merged with Icicle Seafoods in 2020 to form OBI Seafoods.