August 24, 2010

Norway's Morpol acquires Scottish salmon processor

Morpol ASA has announced its purchase of a 100% interest in Mainstream Scotland from Cermaq ASA for NOK350 million (US$57 million).

With the acquisition, Morpol ASA, one of the world's largest salmon processors, now expands into farming. Last year, Mainstream Scotland harvested 6,500 tonnes of Atlantic salmon and posted turnover of NOK196.7 million, which is expected to exceed NOK230 million this year.

Mainstream Scotland will provide about 10% of Morpol's raw material needs. The operation's output represents about 10% of Shetland's total farmed salmon production, and it is the main salmon producer in the Orkney Islands.

Morpol CEO Jerzy Malek said the acquisition will be a platform for market penetration in the UK and French markets as well as further investments.

Malek believes the company can extract synergies in the value chain and enhance margins while at the same time increasing its presence in other markets such as the US, which prefers Scottish salmon.

In late June, Morpol raised NOK1.45 billion as part of its initial public offering.