Ice Fish Farm has finalized the purchase of fellow Icelandic salmon farming company Laxar Fiskeldi.
An Oslo Stock Exchange notice published by Ice Fish Farm on 30 May 2022 confirmed that the transaction between the two firms regarding the acquisition of all shares in Laxar, and 33.3 percent of the shares in processor Búlandstindur, is now complete, and that the consideration for the shares amounted to NOK 1.35 billion (USD 144.5 million, EUR 134.8 million).
The Ice Fish notice stated the merger creates potential synergies, and production diversification will be “significantly improved,” with farming activities spread across 15 sites and four fjords.
The scale is expected to increase its negotiation position for procurement along with other benefits on the production cost per kilogram, such as wellboat, service vessel, and harvesting costs, the company said.
At the same time, the average size of smolts is expected to increase and reduce the time the fish spend at sea, while also raising production levels.
“The goal is to operate a sustainable and profitable salmon operation,” Ice Fish said.
Located in Reyðarfjörður on the east coast of Iceland, Laxar is a fully-integrated salmon farming company, with a total maximum allowed biomass (MAB) of 16,000 metric tons (MT). With 4,007 MT of HOG salmon produced in 2019, and 4,846 MT in 2020, it is one of the largest salmon-farming companies in the country.
Ice Fish now has MAB licenses for 43,800 MT and an application for additional 10,000 MT.
Last week Ice Fish Farm confirmed the presence of infectious salmon anemia (ISA) at its farming operations in Hamraborg and Svarthamar, with the outbreak likely to lead to reduced harvest volumes this year and in 2023.
Photo courtesy of Ice Fish Farm
