The transaction is to take place in mid-November 2010. (Photo: BioMar/ Sjotroll Havbruk/ FIS)

Leroy Seafood buys 50pc of Sjøtroll Havbruk

Leading salmon business Lerøy Seafood Group ASA (LSG) has agreed to purchase 50.71 per cent of BioMar AS's shares in Norwegian fry/smolt producer and farmer Sjøtroll Havbruk AS.

Sjøtroll’s yearly forecast for 2011 consists of 26,000 tonnes gutted weight of salmon and salmon trout. Sjøtroll runs its aquaculture operations with 25 salmon and salmon trout-farming licences.

The company has a 27.5 per cent shareholding in the breeding company SalmoBreed AS and employs some 250 workers.

Shares are being purchased for NOK 540 million (EUR 68.1 million), equivalent to an enterprise value at August of NOK 1,298 million (EUR 163.6 million) on a 100 per cent basis. While NOK 408.5 million (EUR 51.5 million) of the cost of the shares is being paid in cash, the rest is being paid in the form of 1 million shares in LSG at a price of NOK 131.5 (EUR 16.6) each.

Since taking an ownership interest in Sjøtroll as part of a refinancing effort in 2004, BioMar has invested NOK 313 million (EUR 39.4 million) and received total dividends of NOK 65 million (EUR 8.2 million).

Jens Bjerg Sørensen, president of Danish holding company Schouw & Co and chairman of BioMar, has voiced contentment with the divestment.

"We've achieved a good return on our investment, and we see Lerøy as a good future owner of Sjøtroll. BioMar supplies most of the feed used by Sjøtroll, and the current feed contract will continue unchanged," he said.

"BioMar and Lerøy have a long-standing business relationship, and I expect the good relations to continue. Initially, the proceeds from the divestment will be used to optimise the capital structure and reduce the debt in Schouw & Co, but we would also like to continue increasing the investments in our businesses, both in BioMar and the other businesses of our group," he added.

The transaction is to take place in mid-November 2010 and is fully financed.

Once the purchase is complete, LSG will run salmon and salmon trout production from 130 licenses in Norway plus notable production in Scotland. Further, the group possesses its own roe production and satisfactorily meets demand for high-quality smolt.

“The Board of Directors and the management of LSG are both extremely satisfied with what has been achieved by the agreement that has been entered into, and they look forward to further developing Sjøtroll Havbruk AS together with the company's shareholders, management and employees,” LSG said in a statement.

LSG’s central activities in the areas of aquaculture, processing, sales and distribution will benefit from noteworthy synergies as a result of the buy-out.

By Natalia Real
[email protected]
www.seafood.media

Address:	Thormøhlens gate 51 B
City:	Bergen
State/ZIP:	(NO-5006)
Country:	Norway
Phone:	+47 55 21 36 50
Fax:	+47 55 21 36 32
E-Mail:	[email protected]
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