Cargill to buy 24.5 percent of Chilean salmon-farming firm Multi X

Published on
March 18, 2022
Cargill, a major aquafeed producer, has announced it will purchase 24.5 percent of the shares of Chilean salmon farmer Multi X.

Minneapolis, Minnesota, U.S.A.-based agricultural giant Cargill, a major aquafeed producer, has announced it will purchase 24.5 percent of the shares of Chilean salmon farmer Multi X.

Founded in 1987, Puerto Montt, Chile-based Multi X has more than 2,600 employees and handles around 100,000 metric tons of salmon a year, with expectations to increase this to 125,000 metric tons by 2023. It has productive activities in southern Chile’s regions IX, X, XI, and XII and is present throughout the salmon production chain from reproduction to distribution to more than 30 countries.

Mitsui, which has been a Multi X shareholder since 2015, will increase its shareholding in Multi X by 1.13 percent to also reach 24.5 percent ownership. Multi X’s majority owner, Multiexport Foods, will keep control of the company, with 51 percent of total shares. Further details of the deal, including the price paid by Cargill for the shares, were not disclosed.

“Adding Cargill as a new partner of Multi X will be a strategic and decisive step in the next stage of development of the company and its purpose to win over the world's consumers with high-quality, value-added, sustainable products sold under our brands ‘Multi X’, ‘Arka,’ and ‘Latitude 45’,” Multiexport Foods Chairman José Ramón Gutiérrez said. “We welcome Cargill, with [its] 156-year track record of growth and success, as well as a purpose and values that align with ours.”

Tim Noonan, the managing director of Cargill’s seafood business, said the move was driven by his company’s efforts to combine innovation and operational excellence to drive greater supply chain affordability and integrity.

“This partnership is an important next step in the development of our seafood strategy and will leverage our capabilities across the value chain, including consumer insights, culinary innovation, value-added processing know-how, risk management, and fish nutrition and health solutions. As a result, we hope to provide more customers and consumers with access to Multi X’s high-quality portfolio of private label and branded salmon products,” he said.

The transaction remains subject to regulatory approvals and the fulfilment of conditions to which the parties agreed.

Multi X was rebranded from Multiexport Foods in September 2021, with the company’s executives using the occasion to emphasize the company’s commitment to sustainable development and in defining products for different types of consumers around the world. Gutiérrez said the rebranding effort was an important step in the company’s growth plan, focused on innovation and increasing the value of its products.

Cargill – which last year announced a partnership with The Conservation Fund’s Freshwater Institute to develop high-performance fish feed for recirculating aquaculture systems (RAS) – has 155,000 employees in 70 countries serving food, agriculture, finance, and industrial customers in more than 125 countries.

Photo courtesy of Ken Wolter/Shutterstock

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