Tuesday, May 15, 2018

16/05/2018: AKVA group to increase product range with acquisition of Egersund Net AS

AKVA group ASA entered into a letter of intent with Egersund Group AS regarding the acquisition of all shares in Egersund Net AS on the 15th May. Egersund Net produces nets and mooring solutions for the aquaculture industry, including top nets, tube nets and special products such as sweep nets, fish sorting and mort collector nets.

The purchase price to be paid by AKVA is based on an Enterprise Value of Egersund Net AS of NOK 750 million (US $92.3 million). The final purchase price will depend on amongst others customary adjustments for the net debt and working capital of Egersund Net AS at completion of the Transaction.
 

Egersund Net AS complements AKVA's product and service offering, by adding nets and moorings to the portfolio. Following completion of the Transaction, AKVA will be able to serve its customers more efficiently and develop the most optimal solutions for the complete life cycle of fish farming as a more complete technology and service supplier with strengthened geographical presence. Furthermore, Egersund Net's technology, products and expertise will be given access to a wider geographical area through AKVA's global presence and distribution channels.

The combined force within technology and development will accelerate the work towards delivering efficient and cost-effective solutions for the aquaculture industry, ensuring both optimal fish welfare and the highest levels of productivity.

The pro-forma revenues for the acquired business are preliminarily estimated based on figures reported by Egersund Net AS, which were NOK 586 and 603 million for 2016 and 2017, respectively. Similarly, the pro-forma adjusted EBITDA for the corresponding years is preliminarily estimated as NOK 88 million and NOK 76 million. For 2018, revenues are expected to grow by 10-15 percent with an EBITDA margin in the range of 14-16 percent, excluding any synergies from combining the businesses.

The CEO of AKVA group, Hallvard Muri, commented, "We are extremely satisfied with this opportunity and are looking forward to working with Egersund Group AS to realise the transaction. During the last few years, we have seen the competition within cage based solutions getting increasingly tougher. Our customers are expecting nothing but the best, and by joining forces we will have the best basis for strengthening our combined value proposition which will make our customer interactions and interfaces more efficient. This will also enable us to accelerate the development work to optimise our total cage, net and mooring solutions. AKVA group expect significant sales synergies from the acquisition but it will require investments and continued commitment, and before that, making the transaction a reality will be top priority."

The chairman of AKVA and 50 percent owner of Egersund Group, Hans Kristian Mong, commented, "We have strong belief in Egersund Net and in AKVA group on a stand-alone basis, but even stronger belief in them together. To participate in the value creation from this acquisition, taking a high proportion of the settlement in shares, is a prerequisite. Assuming we will reach a final agreement, we will own approximately 62% of AKVA group. We still have a long term goal to be a majority owner in AKVA." 


Read the full news story on the AKVA Group website, HERE.

The Aquaculturists
This blog is maintained by The Aquaculturists staff and is supported by the
magazine International Aquafeed which is published by
Perendale Publishers Ltd

For additional daily news from aquaculture around the world: aquaculture-news

No comments:

Post a Comment