April 25, 2007

Greece's Nirefs ups its stake in Norway's Marine Farms

Greek fish farming company Nirefs said it has raised its stake in listed Norwegian company Marine Farms to 29.9 percent a week after it bought a 17.9 percent stake in the company.

The company last week paid EUR 18.5 million to buy 17.9 percent of Marine Farms. Total cost of the acquisition for the 29.9 percent stake is now EUR 35 million. 

Nirefs management aims to raise their stake to 33.3 percent to gain management control and fully consolidate the company. Nirefs said it expects significant synergies and expansion of its product portfolio with new species like salmon, cod and cobia.

Nirefs has already expanded in Turkey and Spain through acquisitions and direct investment. The profile of Marine Farms, which produces Mediterranean fish in Spain and salmon in Scotland, fits its expansion plans, the company said.

In 2006, Marine Farms had sales of EUR 71.9 million and pre tax profits of EUR 13.3 million. The company also had fish farm operations in Vietnam and Central America to meet demand in the respective markets of Japan and the USA.

The Nirefs group is a leader in Mediterranean fish farming, and in 2006 achieved EUR 161.5 million in turnover and EUR 15.3 million in pre tax profits.