Lisbon, Portugal-based food group Jerónimo Martins has become one of the largest shareholders in Andfjord Salmon.
The deal, conducted through a directed private placement, is for 4,144,932 new shares at a subscription price per share of NOK 41.95 (USD 4.21, EUR 4.02), worth a total of NOK 173.9 million (USD 17.6 million, EUR 16.7 million).
The investment was made through the group’s agribusiness subsidiary, Jerónimo Martins Agro-Alimentar, and gives the company ownership of 10.1 percent of Andfjord Salmon’s total shares.
“We are investing in a promising and truly innovative sustainable business project that is fully aligned with our corporate responsibility priorities,” Jerónimo Martins Chairman and CEO Pedro Soares dos Santos said.
Aquaculture is one of the group’s four business segments, and currently it operates two sea bass and sea bream farms in Portugal, and one in Morocco. Its total production in 2021 was 1,400 metric tons (MT). Overall, the Portuguese group delivered revenues of EUR 20.9 billion (USD 21.04 billion) in 2021, with a net profit of EUR 463 million (USD 487 million).
Andfjord Salmon currently holds a license to produce up to 10,000 MT of salmon at a flowthrough farm in Kvalnes, Norway, equivalent to a target production volume of 19,000 MT of head-on gutted salmon per year. Earlier this month, Andfjord Salmon announced that the first pool at its flow-through facility was ready to accept an initial batch of smolts. Its bespoke flow-through system recreates the salmon's natural habitat on land and promises low energy consumption and the smallest possible environmental footprint, the company has said. On 19 June, the company received approval to develop a second land-based salmon farm in Breivik, Andoya, Norway.
“Andfjord Salmon’s project is focused on using efficient technology to produce salmon,” Soares dos Santos said. “We believe that investing in this innovative and sustainable production will also work for us as a learning-curve accelerator with regards to best practices in aquaculture projects.”
Soares dos Santos said Andfjord Salmon’s sustainability profile was an important factor behind Jerónimo Martins Group’s decision to invest due to his company’s focus on sustainable food production and distribution.
“We are delighted to attract such a major industrial investor to Andfjord Salmon. We consider it an advantage to have an owner that possesses extensive competence in international food industry sales, marketing, logistics, and distribution. Hopefully we can tap into this know-how when we are ready to bring our salmon to the market,” Andfjord Salmon CEO Martin Rasmussen said.
Andfjord Salmon announced a private placement of NOK 38 million (USD 4.3 million, EUR 3.7 million) on 18 February, with animal nutrition and aquafeed leader Nutreco investing and Norwegian seafood group Holmøy increasing its shareholding through its fish-farming company Eidsfjord Sjøfarm AS.
Photo courtesy of Jerónimo Martins/Shutterstock
