BioMar completes acquisition Provimi Aqua

01-02-2008 | |

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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