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News 886 views last update:6 Aug 2012

BioMar completes acquisition Provimi Aqua

BioMar Holding A/S has completed the acquisition of Provimi Aqua, which includes fish feed activities in Denmark, Spain and Chile. In addition the acquisition includes a 50 % ownership stake in a joint venture with AquaChile.

The purchase price is €90.5 million (DKK 674 million) on a cash and debt free basis. The acquisition has been financed through credit facilities.

Provimi Aqua facts
Provimi Aqua will be consolidated in the accounts of BioMar as of 1 February 2008.

In 2007 Provimi Aqua had a turnover of approx. DKK 1.2 billion (€161 m), sold 167,000 tonnes of fish feed and had approx. 295 employees.

Production facilities are situated in Horsens, Denmark and Duenas, Spain as well as in Chile. Chile is the largest market and accounts for approx. 55 % of the turnover of Provimi Aqua. The two companies in Europe account for approx. 45 % of turnover.

Provimi Aqua is in particular strong within niches like feed for eel and emerging species like cod, and also has very strong product lines within larval and fry feeds.

BioMar will in the years to come invest to expand the lead in the niche product lines, this is in particular the case within fry feed in Chile.

A stronger BioMar
Following completion of the transaction BioMar has significantly strengthened its position as the third largest fish feed company in the markets where BioMar is present.

BioMar is doubling its market share in Chile and will become an important supplier to the Chilean market, and have a strong partnership with AquaChile, the third largest fish farming company in the world.

Necessary consolidation
BioMar is through this acquisition taking a lead in the much needed consolidation of the relatively fragmented Continental European market.

The factory in Horsens will consequently produce less for the Continental European market and instead produce more for the Norwegian market.

As a result BioMar will have increased capacity to grow with the expected increase in the Norwegian market and at the same time reduce the overcapacity in the Continental European market.

Related website: BioMar

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