Macduff Shellfish, the UK's largest processor of wild-caught shellfish, has reached agreement in principle to acquire the Young's Seafood's operation in Stornoway.
The potential deal, whose value has not been disclosed, would consolidate a two-year relationship between the businesses and would see all 33 Young's Seafood employees transfer to Macduff Shellfish.
The Stornoway factory currently processes whole langoustines, with 60% of its output sold to Macduff, and de-shells prawns for use in Young's scampi. Young's intends to move supply and processing of its wholetail prawns to its Annan factory, with the potential to create a small number of permanent jobs.
Based in Mintlaw near Peterhead, Macduff Shellfish exports to Europe and the Far East as well as supplying the UK market.
At the end of last year, it purchased the UK's largest scallop fishing fleet, Scott Trawlers.
Euan Beaton, chairman of Macduff Shellfish, said the deal would be a natural progression and "would open up a number of exciting opportunities for us on the west coast of Scotland".
He went on: "Over the last 10 years we've quadrupled the size of the business.
"In the next five years I'd like us to double it again through acquisition deals such as this and through organic growth."
Mr Beaton said Macduff would be looking to build relationships with fishermen on the Hebrides and west coast.
He said: "Our intention, following a full review of the business, would be to invest in the factory looking for sustainable, profitable growth."
Steve Lidgett, operations director at Young's Seafood, said the sale "could be in the best interests of both businesses, the Stornoway factory and our Stornoway employees".
If it goes ahead the deal should complete next month.
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