February 27, 2007
Leroy Seafood Group acquires salmon business after doubling profits
Norwegian seafood group Leroy Seafood Group ASA said Monday (26 February) that it has agreed to acquire Veststar Holding AS, the salmon business of Austevoll Seafood ASA.
The amounts to NOK1,084 million (US$177 million) in shares, in addition to which Austevoll Seafood has agreed to subscribe for additional shares for a total of NOK299m (US$49 million). Austevoll Seafood will thus have a 20.1 percent stake in Leroy Seafood Group.
The acquisition includes smolt production and 27 fish farming licences in Norway, a 60 percent stake in the French seafood processing and distribution company Euro Salmon, and the Chilean company Pacific Seafood Ltda.
Although Pacific Seafood currently has no ongoing farming operations, it holds three licences and has 27 additional licences for approval.
Leroy Seafood Group posted a pre-tax profit of NOK858 million (US$140.5 million) for 2006, double the NOK412.36m (US$67.5 million) in 2005.
Operating revenues amounted to NOK5,616 million (US$920 million), up from NOK4,014 million (US$657 milllion) in the previous year.
Leroy Seafood, headquartered in Bergen in Norway, is a leading seafood production, sales and distribution group with operations in Europe, Asia and the Americas.