Benchmark acquires SalmoBreed, majority of Sfofnfiskur
Leroy Seafood Group ASA and Grieg Seafood have sold their shares in salmon genetics company SalmoBreed to UK-based applied biotechnology company Benchmark Holdings, making it one of the world’s leading salmon egg producers.
The transaction, expected to close in the middle of December pending Benchmark’s completion of its private placement shares process, will generate a NOK 40 million (USD 5.9 million; EUR 4.7 million) profit for Sjoetroll Havbruk AS, which is 50.71 percent owned by Leroy Seafood. For Grieg the sale of its share yields a calculated pre-tax profit of NOK 60 million (USD 8.8 million; EUR 7.1 million).
The consideration for SalmoBreed AS, a genetics company specializing in selective breeding of Atlantic salmon, comprises an initial payment of NOK 205 million (USD 30.2; EUR 24.3 million) and up to an additional NOK 30 million (USD 4.4 million; EUR 3.6) under an earn-out over three years upon the satisfaction of certain performance conditions.
Benchmark also picked up 81.84 percent of Stofnfiskur, a salmon breeding company in Iceland; the consideration comprises an upfront payment of ISK 4.1 billion (USD 33 million; EUR 26.5 million) with up to an additional amount of up to ISK 1.6 billion (USD 12.8 million; EUR 10.3 million) under an earn-out over three years.