July 5, 2013

 

Austevoll to acquire 50% shares in Welcon Invest AS

 

AUSS has signed an agreement on July 3, 2013 for the acquisition of 30,000 shares in Welcon from Origin Enterprises Plc. This constitutes 50% of the shares in the company, and as per completion of the transaction AUSS will own 100% of the share capital in Welcon. Subsequent to completion, Welcon will no longer be a jointly controlled company and become a subsidiary of the AUSS group.

 

The purchase price is NOK740 million (US$121 million). The shares will be paid for in cash and will be financed by drawing on AUSS' existing credit lines.

 

The Norwegian Competition Authority will routinely be notified of the transaction, and notification to certain foreign competition authorities may be required as well. Completion of the transaction is expected to take place shortly after the transaction has been cleared with the relevant authorities.

 

Origin and Austevoll together created Welcon as a joint venture in February 2009 after the merger of their respective Irish, UK and Norwegian fishmeal and fish oil operations, thereby forming a European entity in the manufacture and distribution of marine-based feed ingredients.

 

"The transaction represents an important streamlining of Origin's business profile in line with our commitment to prioritise the allocation of capital for the expansion and development of the Group's Agri-Services business," said Origin Chief Executive Officer, Tom O'Mahony.

 

Welcon is involved in the production of fishmeal, protein concentrate and oil in Northern Europe. The company's business includes purchase of raw materials, processing and sales. The company has production facilities located in Norway, UK, and Ireland.

 

The acquisition of the shares in Welcon is in line with AUSS' strategy to achieve growth within its business segments, and in this context within the segment for fishmeal and fish oil.

 

As a globally integrated pelagic fishery and seafood specialist, Austevoll Seafood ASA (AUSS) operates through subsidiaries and associated companies, fishing vessels with licensed quotas in three of the world's most important fishery countries - Norway, Chile and Peru. Its integrated operations include fishing fleet, fishmeal and oil plants, canning plants, frozen fish plants, salmon farming and sales.

Over the last decade, AUSS has acquired a significant number of companies of a complementary nature to its existing business areas.