Hampidjan Group, which purchased the Ålesund, Norway-based Mørenot Group in December 2022, has split into four divisions – one for fishing equipment, one for aquaculture equipment, one for equipment servicing, and a newly created division focused on offshore applications.
The Mørenot acquisition, which was first announced in December 2022 and which was approved by regulatory authorities in Iceland, Greenland, Norway, and the Faroe Islands in January 2023, was completed by the Reykjavik, Iceland-headquartered firm for NOK 1.1 billion (USD 99.2 million, EUR 92.4 million), which valued Mørenot at EUR 106.2 million (USD 113.9 million). The newly combined firm has approximate earnings before interest, taxes, depreciation and amortization (EBITDA) EUR 42 million (USD 45 million) – Mørenot's turnover in 2021 was EUR 129 million (USD 138 million) and EBITDA was EUR 10 million (USD 10.7 million) and Hampidjan’s sales in 2021 were EUR 173 million (USD 185 million) and its EBITDA was EUR 30 million (USD 32 million).
“We expect the change of ownership to create new opportunities, as there are several large synergies between Mørenot and Hampidjan. Both companies produce, sell and service fishing and aquaculture equipment, as well as equipment for oil and gas, and industry. However, their product offerings are different, and the companies complement each other very well,” Hampidjan CEO Bjørn Nogva said in a press release at the time. “By merging our two companies and utilizing both the production resources and the professional resources within both Hampidjan and Mørenot, we are creating a strong environment for further development of all our fields of expertise.”
Hampidjan currently operates in Scandinavia, Greenland, Iceland, Canada, and the United States, and has 2,000 employees worldwide. Nogva said the acquisition will allow the company to increase its geographical presence, broaden its range of products and services, and establish significant manufacturing capacities in Europe and Asia.
“We have big ambitions with Hampidjan Advant. We are facing a phase of development and growth where the merger of the companies is just the first step,” Nogva said.
In April 2023, Hampidjan announced the merger of Mørenot Offshore and Hampidjan Offshore to create Hampidjan Advant, which will focus on offshore operations including towing, lifting, and mooring.
“With our merger, we are now even better equipped to expand further into these fields. Our experience in providing marine operation solutions has enabled us to develop expertise and products that can be applied in markets beyond the marine industry where the use of fiber has replaced steel,” Nogva said. “With this advantage, we are well-positioned to expand our presence in these markets.”
Nogva said Hampidjan is now pursuing an upgrade of its public listing from trading on Nasdaq First North to Nasdaq Iceland's main market in 2023.
“It is expected that upon listing on the main market, the share capital will be increased and Mørenot's debt will be increased. restructured together with the fact that capital will be obtained for increased investments in Hampiðjunn's production activities in Lithuania,” Nogva said. “In this way, the company can seek further synergies through the sale of products within the group.”
Additionally, former Mørenot CEO Arne Birkeland and CFO Kjell Magne Sunde have left the company as Hampidjan has eliminated both positions.
Following the acquisition, Hampidjan’s largest markets are Norway, with 32 percent of its sales, and Iceland, with 10 percent of sales. Another 10 countries each account for 3 to 10 percent of the company’s total sales. That includes China, where Mørenot’s fishing equipment, ropes, and crab-fishing trap sales were “extremely strong.”
Hampidjan operates a cable and net factory in Lithuania it considers “one of the most technologically advanced in the world today.”
Pre-acquisition, more than half of Mørenot's sales, and 15 percent of Hampidjan’s sales, were to the aquaculture sector in Norway, the Shetland Islands, Scotland, Spain, Ireland, and Iceland. Post-acquisition, Hampidjan has cominbed the two companies’ aquaculture cage production and sales.
"In the last few years, we have seen a clear trend towards increased specialization, emphasis on economies of scale, sustainability, and a digital workplace. Mørenot has therefore worked diligently to increase productivity and strengthen infrastructure while participating in discussions on increased synergies in these markets,” Mørenot Chairman Espen Asheim said. “The merger of these two companies is a very big step in this direction and we could not have imagined a better partnership.”
Photo courtesy of Hampidjan
