Bakkafrost is the leading salmon company in the Faroe Islands. (Photo: Bakkafrost/Havsbrun/FIS)

Bakkafrost to acquire fish meal producer

Salmon farming company P/F Bakkafrost has signed a letter expressing its intent to take over all outstanding shares in P/F Havsbrún in a deal worth DKK 1,100 million (EUR 147.5 million). The signing will allow Bakkafrost to expand appreciably on the Faroe Islands.

Through the transaction, Bakkafrost will gain control of the entire value chain from salmon feed production to that of value added salmon products (VAP).

Farmed salmon production will get a boost of 7,000 tonnes gutted weight this year and reach a total of 40,000 tonnes gutted weight; additional growth would take place in the coming years. 

As well, Bakkafrost anticipates that its shareholders will benefit from economy of scale and better production planning.

Of the agreed purchase price of DKK 1,100 million (EUR 147.5 million), the sellers will receive about DKK 403 million (EUR 57.66 million) in the form of shares in Bakkafrost. The rest will be paid in cash and be financed by a combination of new debt financing and current facilities.

P/f Havsbrún is now the second largest shareholder of Bakkafrost, holding approximately 16.7 per cent of the outstanding shares in the company, which will be used as payment. Bakkafrost will not issue it any new shares as a result of the transaction.

P/F Havsbrún’s management and key employees will continue working in the company.

The transaction is subject to satisfactory due diligence, regulatory approval and financing and should be completed on 1 June.

Bakkafrost is the chief salmon farmer on the Faroes and will yield an estimated output of 33,000 tonnes gutted weight this year. It operates licenses on 14 farming sites located in 13 different fjords. 

Faroe Islands-based P/f Havsbrún touts itself as a modern, internationally renowned producer of fish meal, fish oil and fish feed. Last year, it bought 116,000 tonnes of raw material and produced some 60,250 tonnes of feed, 25,000 tonnes of fish meal and 9,900 tonnes of fish oil; nearly all of the produced fish meal and oil goes for use toward its own fish feed production, and a small portion is exported. 

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

Address:	Glyvrar
City:	Glyvrar
State/ZIP:	(FO-625)
Country:	Faroe Islands
Phone:	+298 40 50 00
Fax:	+298 40 50 09
E-Mail:	[email protected]
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