January 28, 2014

 

 

The merger of fishmeal and fish oil producers Egersund Fisk and Welcon Invest with Norway Pelagic under one roof resulted in the creation of the new Norwegian pelagic powerhouse - Pelagia, which will be 50-50 owned by Austevoll Seafood and Kvefi.

 

Led by Egersund Fisk's CEO Egil Magne Haugstad, Pelagia regroups Welcon Invest, a fishmeal and oil producer, Norway Pelagic, the country's largest pelagic processor for human consumption, and Egersund Fisk, focused on fishmeal and oil as well as human consumption.

 

This will give it access to 16 human consumption plants, seven fishmeal and oil factories, one refining plant, and two vessels with pelagic fishing rights. Indirectly, it will also own 25% in Nergard, a privately-owned pelagic and whitefish processor, and 50% of UK pelagic processor Shetland Catch.

 

In total, Pelagia will have annual sales of more than NOK6.1 billion (US$1 billion) on a non-consolidated basis, Austevoll's CFO Britt Drivenes said last August.

 

The group will be headquartered in Bergen, south-western Norway. Value-added production will be one of its key focus, Drivenes said last year.

 

Austevoll and Kvefi are owned by the Mogsters and the Witzoe, respectively. These families are also both important players in the salmon industry. Austevoll controls Leroy Seafood, the country's second largest salmon producer. Kvefi's parent company and investment fund Kverva controls Salmar, the third largest salmon farmer.

 

The board of directors will reflect the joint ownership. It will consist of Austevoll's chairman Helge Singelstad, Austevoll CEO Arne Mogster and Austevoll board member Helge Mogster, alongside Gustav Witzoe, co-founder of Salmar and owner of Kverva, and Helge Moen, managing director of Kverva.

 

Present in Norway, the UK and Ireland, Welcon owns six fishmeal and oil plants and three factories producing protein concentrates and oil. The company also has a storage facility in Egersund in southern Norway used as a border station to import protein and oils.

 

Norway Pelagic owns 13 processing plants across the country's coast, specialised in landing, refining and selling fish for human consumption. The company owns 50% of Shetland Catch.

 

Egersund Fisk operates a fishmeal and oil factory in Egersund, and two human consumption plants, located in Egersund and in Tromso (in northern Norway). The group also has a refining plant in Skagen, Denmark, and owns 50% of Nordsildmel, which sells and purchases fishmeal, oil, concentrates and related products.

 

The merger has received the nod from the competition authorities to go through as unveiled by Austevoll Seafood.