June 2, 2017

BioMar acquires Ecuador shrimp feed producer

 

As part of the company's expansion strategy into the Latin American shrimp feed market, BioMar Group has acquired 70% of the Ecuadorian shrimp feed producer Alimentsa.

The acquisition will position BioMar among the leading shrimp feed producers in Latin America, creating synergies towards existing business.

Since 2016 the company has been servicing Latin American shrimp farmers from the factory in Costa Rica with focus on sustainability and feed efficiency. With the acquisition of Alimentsa, BioMar will create a solid foothold into Ecuador which is one of the world's leading shrimp producing countries with a volume of more than 450,000 tonnes of shrimp. The country is in general recognised for shrimp products with emphasis on high quality and sustainability by both end-consumers and retailers. The acquisition is subject to approval by competition authorities in Ecuador.

"It is our ambition to become a major player within high-end shrimp feed. With the acquisition of Alimentsa we can immediately deliver an attractive value proposition to the shrimp farmers in Latin America and we believe that we in the future - together with Alimentsa and the customers - can develop new product solutions based upon shared interest in innovation, cooperation, sustainability and performance. During our due-diligence process we have been confirmed that the acquisition will enable us to build a strong relationship towards the Latin American shrimp farmers. Alimentsa is recognised for high-end feed and a professional technical service. That is very much in line with our focus in BioMar," explains Carlos Diaz, CEO in BioMar Group.

The acquisition represents an investment of US$119 million. BioMar Group estimates that the market will prove to be very attractive with growth rates of 8-12 %. Shrimp production in Ecuador is characterised by optimal conditions that allows up to three production cycles per year. Furthermore the farming densities in Ecuador are quite low compared to other markets allowing much better and sustainable sanitary conditions. Alimentsa holds a market share about 12-15 %.

"We foresee a solid business potential in Ecuador, but first and foremost we believe that the combination of a strong local company with recognized products and deep insights into the market together with a global company with the size and innovation muscle as we have in BioMar Group will enable us to meet the future requirements of the market as well as the end-consumers. We are very confident in the local management and the organization," says Carlos Diaz and continues:

"We have during the last years expanded the business significantly. In 2016 we established production in Turkey. In 2017 we are forming a solid footprint with two factories in the Chinese market and in 2018 we have planned and announced the construction of a green field factory in Australia. Now we are taking a leap into the world of shrimp. All of those initiatives are a part of our growth strategy: Shaping the Future. We believe in being 100% devoted to aquaculture and we have clearly stated that we strive to be innovators dedicated to an efficient and sustainable global aquaculture."