Private equity firm Bluefront Equity has taken a majority stake in Proff Kulde AS – a supplier of refrigerant and heating solutions for the seafood industry.
Svolvær, Norway-headquartered Proff Kulde has developed a number of refrigeration and heating solutions based that use CO2, including refrigerated seawater (RSW) systems that are used for cooling fish onboard fishing vessels and in the land-based aquaculture sector.
Bluefront Equity Partner Simen Landmark, who will join Proof Kulde’s board of directors, said that while Proff Kulde is a relatively small company, its pace of innovation and sustainability focus is far ahead of other companies in this segment.
“Targeted R&D efforts have for many years been key to develop cost-efficient and sustainable solutions with minimal environmental impact,” he said.
The company has grown steadily since it was established in 2013. In 2021, it delivered revenues of NOK 35 million (USD 3.5 million, EUR 3.4 million), with an operating profit of NOK 4 million (USD 404,000, EUR 384,000).
This year, the company expects 20 to 30 percent revenue growth.
Bluefront Equity is making the investment through a combination of a share issue and the purchase of shares from current shareholders.
The parties have agreed to not disclose the financial details of the transaction.
Following completion of the transaction, Bluefront Equity will own approximately 60 percent of Proff Kulde. The remaining shares will remain owned by the company’s co-founders and management, including managing director and co-founder Mathias Ingebrigtsen, chief technology officer Morten Andre Engen, and chief financial officer Lasse Pedersen.
Ingebrigtsen said having Bluefront Equity as a shareholder with improved access to capital will allow the firm to increase its pace of innovation and production capacity.
“A key reason for bringing Bluefront Equity onboard as shareholder is because there is a large untapped potential for our technology throughout Norway and the rest of Europe. An increased focus on international markets will be an important part of our strategy going forward. We want to create more jobs here in Svolvær,” he said.
Jan Sverre Røsstad, who is a former executive vice president at aquafeed firm BioMar, will become chairman of Proff Kulde’s board of directors following the transaction's completion.
Photo courtesy of Bluefront Equity
