The family behind G & J Jack Seafoods, of Fraserburgh, has sold a three-turbine wind farm, near Stonehaven, for nearly £3.3 million in cash.
The bumper sum – almost £1.1m per turbine – is in addition to the new owner taking on a loan worth about £990,000.
Details of the sale by George Jack Jnr, 49, and other family members emerged in an announcement by the buyer, energy company Parkmead Group, to the London Stock Exchange.
The Kempstone Hill wind farm boasts generating capacity of 1.5 megawatts – enough to power up to 1,000 homes.
It was owner-run so no employees will transfer to Parkmead as a result of the acquisition.
Aberdeen-based Parkmead swooped to buy Kempstone Hill Wind Energy (KHWE), which is registered at an address in Peterhead, as part of its diversification into renewable energy.
Documents lodged at Companies House show KHWE was controlled by Mr Jack, one of four directors of the business, with a 52% stake. The three other directors were all family members.
Mr Jack was unavailable for comment.
G & J Jack Seafoods is a global supplier of seafood sourced daily from local markets.
The company has been at the heart of the north-east fishing industry for more than 100 years, with the family behind it now in its fifth generation of trading.
According to the firm’s website, the business started with “Granny Bessie” travelling around local farms from her home in St Combs with a creel full of fish on her back.
She would trade the fish for milk, eggs and chicken from the farms she visited.
Seafood and road haulage
The business still transports its own seafood today through associated company J &G Jack Transport.
Their parent, J & G Jack Limited, turned over about £18.5m during the 12 months to March 2021 – down from £23.1m the year before as the coronavirus impacted business.
Mr Jack was a director of J & G Jack Limited, G & J Jack Seafoods and J & G Jack Transport between 2014 and 2017.
Wind farm worth £380,000 a year
According to its new owner, Kempstone Hill wind farm has “an attractive inflation-linked, feed-in tariff for the life of the project through until 2036”.
Electricity is sold through a power purchase agreement which “provides exposure to rising wholesale electricity prices”, Alternative Investment Market-listed Parkmead said.
It added: “This acquisition significantly increases Parkmead’s presence in renewable energy and electricity markets.”
Kempstone Hill generated revenue of £380,000 during the year to September 30 2021, delivering adjusted earnings before interest, taxes, depreciation, and amortisation of £230,000.
This operational wind farm is complementary to our earlier stage, high-upside renewable energy projects.”
Tom Cross, executive chairman, Parkmead Group.
Parkmead said it “sits well” with its ambitions for renewables.
The firm added: “As an established wind farm already connected to the grid, the group will benefit from Kempstone Hill’s established relationships and expertise.
“The acquisition is immediately revenue and cash flow enhancing.”
Parkmead executive chairman Tom Cross said: “This important acquisition continues our clear and focused strategy to build a balanced energy group.
“Kempstone Hill provides another revenue-generating asset to Parkmead, which has a long-life and a very steady stream of cash flow.
“This operational wind farm is complementary to our earlier stage, high-upside renewable energy projects.”
He added: “The energy industry is experiencing rapid change, and the Parkmead team is growing our company through these challenges and adding exciting opportunities in renewable energy.
“We will continue to build a portfolio of high-quality energy projects through acquisitions, organic growth and the active management of our assets across all energy sectors.”
Parkmead owns two large areas of land elsewhere in Aberdeenshire and the company sees these as having “significant and varied” renewable energy potential.
Studies are being conducted across these sites for the possible development of a large wind farm.