Cermaq increases Chile stake

By

SeafoodSource staff

Published on
September 30, 2012

By the end of this week Chilean fish-farming company Cultivos Marinos Chiloé S.A. will be wholly owned by Cermaq ASA. The acquisition, valued at USD 100 million, is expected to close 5 October. The transaction will increase Cermaq’s total farmed salmon production capacity by almost 25 percent to approximately 180,000 metric tons.

Cultivos entered into the agreement after ayear of lower market prices and increased production. The majority of the company’s production this year has been sold as value-added products, thus the acquisition will strengthen Cermaq’s position in this sector of the industry.

“The acquisition of Cultivos Marinos Chiloé is important to support Cermaq`s growth ambitions in Chile,” said Cermaq CEO Jon Hindar. “We currently observe a challenging market for most farming companies, but we are convinced that a continued increase in the global demand for salmon will strengthen the industry`s profitability. The access to morecapacity in one of the most interesting global salmon areas is therefore of the utmost importance for Cermaq."

Cultivos is a medium-sized farming company with production in the Los Lagos and Aysén regions of Chile. The company owns 12 smolt facilities and two processing plants with value-added product capacity including smoked salmon, which accounts for 16 percent of total production. Cultivos has 1,500 employees, with approximately half working in the processing plants.

As part of the transaction, Cermaq’s Chilean group, Mainstream Chile, expands its operations in three new neighborhoods in Chile.

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