April 13, 2011

Denmark's Bakkafrost to acquire Havsbrun

Danish salmon producer Bakkafrost has signed a letter of intent to acquire all outstanding shares in fishmeal processor Havsbrún, and the agreed purchase price amounts to DKK1,100 million (US$214 million).

The sellers will receive approximately DKK403 million (US$78 million) 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.

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 June 1, 2011.