Aarhus, Denmark-headquartered aquaculture feed company BioMar Group has announced its acquisition of leading Norwegian aquaculture research center, LetSea.
The company, which currently owns a 34-percent stake in LetSea, will take over the center’s remaining shares from KapNor. The sale is expected to be complete by Q2 2025.
“This acquisition creates a unique position for BioMar as we secure access to further R&D capacity in Norway," BioMar Group CEO Carlos Diaz said. "At the same time, we will welcome a team of very competent research staff into our organization, with an already established collaboration.”
Helgeland, Norway-based LetSea, founded in 1996, runs a variety of controlled trials and other experiments on infrastructure ranging from 5x5 meter tanks to full-scale sea cages, allowing aquaculture clients to test feed at every stage of the production cycle.
"LetSea’s unique facilities and expertise complement our existing research efforts, enhancing our ability to innovate and test new solutions under real-life seawater conditions," BioMar Global R&D Director Simon Wadsworth said. "Our long-standing collaboration has already delivered significant value to our customers, and we look forward to continuing this journey together.”
In its 2024 earnings report, parent company Schow & Co and BioMar CEO Carlos Diaz emphasized the company’s investment in supply chain efficiency and product portfolio optimization.
The feed supplier reported that it achieved strong results in 2024, despite lower volumes and profits. BioMar improved its EBITDA by 18 percent across its consolidated companies in the calendar year.
In Q4, its consolidated companies sold 348 million metric tons (MT) or product, down from 345 million MT in Q4 2023. It achieved an EBITDA of DKK 382 million (USD 55 million, EUR 51 million) for the quarter, down from DKK 397 million (USD 58 million, EUR 53 million) in Q4 2023. Its Q4 revenue was DKK 4.3 billion (USD 630 million, EUR 577 million) up from DKK 4.2 billion (USD 620 million, EUR 567 million) in Q4 of 2023.
For 2024 as a whole, BioMar sold 1.3 billion MT, down from 1.4 billion MT in 2023, a 5 percent decline. The company saw a 2024 revenue decline of 7 percent, from DKK 17.9 billion in 2023 (USD 2.6 billion, EUR 2.4 billion) to DKK 16.6 billion (USD 2.5 billion, EUR 2.2 billion). Its EBITDA for the year improved from DKK 1.3 billion (USD 200 million, EUR 183 million) in 2023 to DKK 1.5 billion (USD 220 million, EUR 201 million) in 2024.
Overall, CEO Carlos Diaz said that “it is with great satisfaction that we look back at 2024.”
The lower volume, he explained, "should be seen in the light of our commercial excellence efforts where we deliberately steer away from contracts with less potential for mutual[ly] beneficial partnership on advanced feed solutions and from sales to high-risk customers."
According to Diaz, the results reflected the success of the company’s long-term strategy in prioritizing building value with customers rather than transactional relations, volume and market share.
Biological conditions in Norway and Chile and energy shortages in Ecuador did play a role in the declines, Diaz said.
In its Q3 2024 report, the company reported that Schouw & Co. was considering taking BioMar public. The 2024 report, however, featured a letter from BioMar Board Chairman Jens Bjerg Sørensen which said that though there may be some benefits to seperately listing BioMar, “there can be no assurance as to whether and when a separate listening of BioMar will be completed.”
The company reiterated that the earliest such a step would take place was the second half of 2025.
