July 11, 2011

Paine & Partners to acquire Scanbio

Paine & Partners, LLC, has announced that it will acquire Scanbio Marine Group from Scanbio AS, with the transaction expected to close in the third quarter of 2011.

Financial terms of the transaction were not disclosed.

Scanbio, headquartered in Trondheim, Norway, produces its fish protein concentrate, fishmeal, and fish oil from white and pelagic fish and salmon by-products. The products are primarily sold into the aquaculture fish feed, animal feed and bio-fuel markets.

Scanbio AS is owned by Rolf Eide, Per Arne Eide, Nordic secondary direct fund Verdane Capital IV, and certain other shareholders.

Following the Paine & Partners transaction, Carl Eide will assume the position of Chief Executive Officer of Scanbio. Per Arne Eide will retire as Chief Executive Officer, but will remain involved with the company and will have a seat on the Scanbio Board of Directors.

Atle Sovik, a Partner at Verdane Capital Advisors, said, "During Verdane Capital Advisors' ownership, the company has developed new products and significantly rationalized operations, leading to average annual EBITDA growth of close to 30% over the past seven years."

W. Dexter Paine III, a Partner at Paine & Partners, said, "Scanbio's fish by-product processing capabilities are representative of the best-in-class and increasingly sustainable operating practices employed in the Norwegian wild catch and salmon aquaculture sectors. This transaction is aligned with Paine & Partners' focus on the increasing global demand for efficient and sustainable protein sources, seafood processing, and on actively managing companies' global expansion efforts."

Per Arne Eide, Chief Executive Officer of Scanbio, said, "Through this transaction, Scanbio will improve its access to capital and will be better positioned to take advantage of significant growth opportunities both in Norway and beyond."

Paine & Partners is currently invested in Icicle Seafoods, whose operations include the largest US owned and operated salmon farming business, which produces salmon fillets and salmon products in the Pacific Northwest of the US, as well as a joint venture in Chile producing farm raised coho and trout.