September 6, 2010

Norway's Aker BioMarine enters new joint venture

Aker BioMarine ASA on Thursday announced that through a partnership with Lindsey Goldberg LLC it acquired a 100% interest in fish oil supplement manufacturer Epax Holding AS from Austevoll Seafood ASA for NOK561 million (US$91.9 million).

The deal is expected to close in the fourth quarter of this year. Epax will become part of Trygg Pharma, a new 50-50 joint venture company established by Aker BioMarine and Lindsey Goldberg, a New York-based private investment firm.

In addition to Trygg Pharma, Natural Nutrition Development Ltd. AS, also a wholly owned subsidiary of Aker BioMarine, will fall under the new joint venture company. Lindsay Goldberg will pay up to NOK280 million (US$45.9 million) for the 50% stake in the company.

Meanwhile, Aaron Kramer was appointed CEO of Trygg Pharma; while Bjørn Refsum, who is currently CEO of Epax and will become managing director of Epax and executive VP of manufacturing for Trygg Pharma.

Aker BioMarine and Lindsey Goldberg plan to immediately invest in expanding the capacity of the Epax production facility in Ã…lesund, Norway, as well as improve the Trygg Pharma production facility in Hovdebygda, Norway.

As part of the relationship between Trygg Pharma and Austevoll Seafood, Epax entered into a long-term supply agreement for crude fish oil with Austevoll subsidiary Austral SA.

For Austevoll, the sale of Epax, which it had owned since 2007, represents an opportunity for the Norwegian company to focus on its core businesses - pelagic fishing, salmon and trout farming and seafood processing and distribution.