Norwegian private equity fund Bluefront Equity has acquired an 80 percent stake in Cryogenetics, which provides technology and other services to preserve aquatic genes for the aquaculture industry.
Cryogenetics freezes fish milt – particularly salmon milt – to benefit international fish egg producers and fish-farming companies. The company, established in 2002, has developed methods to support advanced fish breeding and has established a salmon genetics program with laboratories in Norway, Canada, the U.S., and Chile.
“One of the enablers for a more sustainable fish-farming industry is access to fish that have genetics that make them as robust as possible at sea. Cryopreservation is an important support tool for breeding fish with the right characteristics,” Bluefront Equity Partner and CEO Kjetil Haga said. “A sophisticated breeding process enables even better fish welfare and health. This is exactly what Cryogenetics helps the fish farming industry to achieve.”
According to Bluefront, salmon farming is currently Cryogenetics’ largest market. Using frozen salmon milt – and the frozen milt of other fish species – allows companies to store and preserve it until use, which has additional benefits.
“Freezing of salmon milt allows us to combine different year classes, optimize genetics and secure optimal milt quality year-round,” Cryogenetics Managing Director Eli Sætersmoen said. “Further, cryopreservation enables the development of advanced product design for salmon egg producers and the ability to safeguard valuable genetics in case of loss of the broodstock.”
The process can also help preserve vulnerable species. Cryogenetics has preserved the milt of wild Norwegian salmon on behalf of the Norwegian Environment Agency to ensure there is genetic material still available.
According to Cryogenetics, the salmon industry is lagging behind other animal industries when it comes to utilizing genetics. Only 20 percent of farmed fish uses frozen milt in its production, compared to 90 percent of the livestock industry.
“We believe that advanced breeding is one of the keys to improved animal welfare, growth, and profitability for the fish-farming industry,” Sætersmoen said. “Cryopreservation is an essential support tool for advanced breeding, and we, therefore, envisage significant growth opportunities going forward, not only within the salmon business but also within farming of trout.”
Bluefront said Cryogenetics is predicting NOK 55 million (USD 5 million, EUR 4.6 million) in revenue in 2024 – which would be 20 percent higher than in 2023. Neither Bluefront nor Cryogenetics disclosed financial details of the transaction.
The investment was made by Bluefront’s impact fund, Bluefront Capital II, which it secured earlier this year.
