FPI

"Five months later, on September 6, 2001, FPI announced a blockbuster move: it would purchase Clearwater for $ 510 million. In other words, John Risley-dominated FPI was buying Clearwater, the company co-owned by John Risley, to make what The Canadian Press said would be a “mega” fish business. And Risley would become its new chief executive."

"When I began talking about Risley’s vision for FPI, Armoyan cut me off. “Consolidation,” he summarized. “What’s the sense of keeping ten, twenty, thirty plants working at 20 percent capacity when you can consolidate them to five or ten. So we were just talking about doing things the proper way—something that’s sustainable long-term.” Armoyan seemed puzzled the concept even had to be explained. “It’s not a new invention,” he added. “This gets done on a daily basis.”"

"FPI’s sharing system meant each plant was open for only a matter of weeks each year, with workers at each plant able to log sufficient weeks to qualify for employment insurance benefits. Harbour Breton mayor Churence Rogers was skeptical of Risley’s claim the plant could run year-round. “My question is, if Vic Young couldn’t make it happen, what can John Risley do to make it happen?” Rogers told the St. John’s Telegram. Rogers feared Risley would consolidate the work and cut hundreds of FPI’s three thousand employees. It was a fear that proved justified."

"Details were scarce, but FPI would finance the acquisition by taking on $ 210 million in existing Clearwater debt and issuing millions of non-voting shares to Risley and Colin MacDonald, meaning they were giving up 100 percent of Clearwater to get non-voting shares in FPI. Risley would be CEO of the giant company and would reportedly hold (through CFFI) 60 percent of the combined common shares but still only about 15 percent of the preferred voting shares. “I will therefore have no more control over the company when the transaction is closed than I have today,” Risley declared. (Except he would also be running it.)"

"“John knew nothing about [the cable] business,” said Derrick Rowe, who worked in the telecom industry before Risley made him CEO of FPI. “Well, I shouldn’t say nothing, but, well yeah, nothing! When John sees the strategy and the vision, it can be flawed around the edges, but he knows generally what needs to happen to create that opportunity and that value.”"