January 4, 2022


Bakkafrost gets 90% stake in Denmark's Munkebo


Faroe Islands-headquartered salmon farmer Bakkafrost has acquired 90% of the shares in Munkebo Seafood A/S in a transaction that closed on January 1.

According to the company, the deal was jointly made with Munkebo general manager Michael Karlsen, with the shares acquired from Paul Lybech, who has been engaged with Munkebo Seafood for almost 25 years. Following the transaction, Karlsen holds a 10% of the shares in Munkebo. He will continue in his role.

Founded in 1974, Munkebo Seafood has been engaged in the production of canned fish. The company currently operates a modern facility and offers a wide range of products, a large share of which are salmon-based.

Munkebo has around 40 employees, and its products are mainly sold within the EU market to retail customers. It had a gross contribution margin of kr.13.7 million (US$2.1 million) in 2019, with an EBIT of kr.2.1 million (US$ 320,655), and in 2020, achieved a gross contribution margin of kr.18.5 million (US$2.8 million), with an EBIT kr.4.8 million (US$733,032).

For the past few years, Bakkafrost has been one of Munkebo’s largest raw materials suppliers.

Bakkafrost said that with a planned increase in production of salmon over the coming years from its farms in the Faroe Islands and in Scotland, Munkebo will have a strengthened raw material base, while Bakkafrost will be able to further increase the value derived from its salmon by-products – offering canned food in addition to its current fresh, frozen and smoked salmon offerings.

Munkebo will also have access to Bakkafrost's global sales network.

Prior to the acquisition, Bakkafrost had 1,644 full-time employees. The group's total harvest guidance for 2021 is 96,000 tonnes of head-on-gutted weight salmon.

- SeafoodSource