Private equity fund buys into Arctic char producer
Icelandic private equity fund Freyja, part of Kvika Asset Management, has acquired a 15 percent stake in Matorka ehf., a land-based producer that mainly focuses on farming Arctic char, but also farms rainbow trout.
Matorka has built farming units near Grindavík, Iceland, and today sells its products to markets in Europe and North America. Last year, the company produced about 1,000 metric tons (MT) of fish. The operation has posted positive earnings before interest, taxes, depreciation, and amortization (EBITDA) margins since 2019.
According to local media reports, Matorka's sales and marketing activities have been successful in recent months – despite the challenges brought to the world’s fish markets by the COVID-19 pandemic, while its revenues have increased 18-fold in the last five years, when production began at its Grindavík facility.
The company has an operating license that will allow it to ramp up its production in its present location. It also projects that investments in new production infrastructure could see it triple its current harvest volume.
The Freyja fund was established by Kvika in 2018. This deal sees it become Matorka’s third-largest shareholder.
Other investors include Dutch investment fund Aqua-Spark.
Photo courtesy of Matorka