June 9, 2017

 

BioMar Group acquires high-end shrimp feed producer

 

 

 

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

 

The acquisition will position BioMar among the leading shrimp feed producers in Latin America creating synergies toward 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 foothold in 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 generally recognised for its shrimp products with an emphasis on high quality and sustainability by both end-consumers and retailers.

 

"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 in the future - together with Alimentsa and customers, we can develop new product solutions based upon shared interest in innovation, cooperation, sustainability and performance," explains Carlos Diaz, CEO of BioMar Group.

 

"During our due-diligence process, we have confirmed that the acquisition will enable us to build a strong relationship with 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."

 

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. In addition, Alimentsa holds a market share around 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 recognised 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 organisation", Diaz said.

 

"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," he added.

 

- BioMar