News last update:6 Aug 2012

Salmon farmer Bakkafrost to acquire fish meal producer Havsbrún

On the Faroe Islands salmon grower Bakkafrost has signed a letter of intent to acquire all outstanding shares in fish processor Havsbrún for DKK 1,100 million (€147.5m).

The sellers will receive approximately DKK 403 million (€57.66m) of the payment in the form of shares in Bakkafrost. The remaining payment will be paid in cash and will be financed by a combination of new debt financing and existing facilities.
Following the transaction Bakkafrost will control the whole value chain from salmon feed production to the production of value added salmon products (VAP).
The production of farmed salmon will increase by 7,000 tonnes gutted weight in 2011 to a total of 40,000 tonnes gutted weight, with further upside in the coming years.
The transaction is expected to be completed on 1 June 2011.
Fish meal processor
Havsbrún is a modern, internationally renowned producer of fish meal, fish oil, and fish feed situated in the Faroe Islands.
In 2010 it purchased 116,000 tonnes of raw material and produced approx. 60,250 tonnes of feed, 25,000 tonnes of fish meal and 9,900 tonnes of fish oil.
Almost all of the produced fish meal and oil is used for its own fish feed production, and only a small part is being exported.
Bakkafrost is Havsbrúns largest customer representing about 60% of the total volume of fish feed sold in 2010. Havsbrún also owns 33.3% of Hanstholm Fiskemelsfabrik (fishmeal) in Denmark.
Havsbrún owns 78.1% of the farming companies Faroe Farming and Viking Seafood with a total of 5 licenses and a total production of 9,000 tonnes gwt salmon in 2010. The estimated capacity is 15,000 tonnes gwt salmon per year.
Salmon farming
Bakkafrost is the largest salmon farmer on the Faroe Islands, with an estimated production of 33,000 tonnes gutted weight in 2011. The Group is fully integrated from smolt to VAP and sales.
The Group operates licenses on 14 farming sites located in 13 different fjords and has primary processing in Klaksvík and Kollafjørð and secondary processing (VAP) in Glyvrar. The headquarter is located in Glyvrar, and the company has a total of 400 employees.

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