July 19, 2013

Cermaq enters purchase agreement with Altor, Bain Capital on sale of EWOS

Press release

 
Cermaq has entered into a definitive share purchase agreement with Altor Fund III GP Limited and Bain Capital Europe, LLP regarding the sale of EWOS.

The agreed consideration implies an enterprise value of EWOS of NOK6.5 billion (US$1.1 billion), and will be payable in cash upon completion. The transaction is expected to close by the end of October 2013.

Altor and Bain Capital have followed the aquaculture industry for several years, and see great potential in working with EWOS' management team to further develop its world leading fish feed business.

The transaction will enable Cermaq to free up significant funds. Such funds will be used to reduce debt to ensure a continued solid capital structure and compliance with all financing commitments for the remaining operations, and to realise an extraordinary dividend to the shareholders. Subject to completion of the transaction, the company expects an extraordinary distribution to Cermaq's shareholders of around NOK4.5-5.0 billion (US$754 million-837b million), or between NOK48 (US$8.04) and NOK54 (US$9) per share.

The Cermaq board will now continue its efforts to further develop the company's significant farming activities in Norway, Canada and Chile. Cermaq supports a further consolidation of the farming industry in selected geographical areas and will consider various solutions to further develop the company's strong position and further maximise residual shareholder value.

Cermaq is an international group of companies with activities in fish farming, production of salmonid feed and research in aquaculture and has operations in Norway, Chile, Canada, and Scotland. Through its business unit EWOS, Cermaq ranks as the world's largest producer of feed for salmonids.