SalMar lands Villa Arctic salmon farms
Soon after releasing its fourth-quarter and year-end results, SalMar ASA on Tuesday announced that it inked an agreement with Villa Arctic AS, a wholly owned subsidiary of Villa Organic AS, involving the acquisition of 10 licenses as well as a facility in Laksefjorden, its assets and 50 percent of the site’s biomass.
The two parties also agreed to conduct joint operations in Laksefjorden, which is located in southern Norway, from 1 April 2012 and to the harvest of the 2015 generation.
“This investment significantly strengthens our position in Northern Norway,” said CEO Yngve Myhre. “Greater production capacity gives us efficiency gains and through our joint operation with Villa Arctic AS we will get a solid foothold in Troms and Finnmark, an area we strongly believe in.”
SalMar will pay NOK 110 million for the 10 licenses and NOK 57 million for the remaining assets, though the purchase price will be adjusted upward if the average salmon price for 2013 exceeds NOK 30.50 per kilogram, deemed the first step. A step model has been designed allowing for an additional consideration of NOK 15 million from the first step and up to a maximum of NOK 50 million if the average salmon price exceeds NOK 35.50 per kilogram.
SalMar said it will be “constantly seeking to exploit the increased licensed volume both through effective joint operations in Laksefjorden together with Villa Arctic AS, and through increased production at existing sites in Troms as well as possible new locations in Finnmark.”
After the acquisition, SalMar will operate 23 licenses in Troms and Finnmark. At full capacity, the acquisition will increase the harvest volume in the region by 12,000 to 14,000 metric tons in 2013-14; the 2012 harvest volume is not expected to increase significantly from a previous forecast of 19,000 metric tons.