Faroese salmon farming company Bakkafrost has signed an agreement for the acquisition of 68.6% of The Scottish Salmon Company (SSC) from private equity firm Northern Link.
Successful acquisition of the stake will trigger a mandatory tender offer for the remaining 31.4% free float in SSC. The agreed acquisition price implies an enterprise value for SSC of DKK 4.35 billion ($636.9 million).
With operational headquarters in Edinburgh, Scotland, SSC had a harvest of 29,913 tonnes in 2018, an 18,463 tonnes harvest in H1 2019 and has total harvest capacity of 50,000 tonnes. The company generated an EBITDA of £56.7 million in 2018.
Bakkafrost said the deal will create a “global leader in premium salmon with dual exposure to both Faroe Islands and Scottish premium salmon”.
“Bakkafrost’s journey has been characterised by delivering industry-leading growth and profitability combined with a focus on shareholder value creation,” said Regin Jacobsen, CEO of Bakkafrost.
“The Scottish Salmon Company represents an attractive acquisition at this juncture providing exposure to the attractive and premium Scottish salmon farming region with potential for synergies and transfer of best practices.
“The entire Bakkafrost team is looking forward to working with the SSC management team to continue to enhance performance of the business and drive value in the years ahead.”
Bakkafrost believes there is potential for material improvement in The Scottish Salmon Company’s profitability over a five-year period through the realisation of identified synergies, transfer of best practices and a targeted investment programme.
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