Frøya, Norway-headquartered salmon farmer Måsøval AS has entered into an agreement with Vartdal Invest AS to acquire 100 percent of the shares in Vartdal Gruppen, comprising the entities Aquafarms Vartdal AS, Vartdal Fiskeoppdrett AS, Urke Fiskeoppdrett AS, Western Seaproducts AS, and Vartdal Fryseri AS.
Måsøval CEO Asle Rønning said the acquisition strengthens the company’s position in production area (PA) 5, along Norway’s south-central coast, and supports its strategy in several areas.
“We diversify the biological risk through expanding operations significantly in PA 5. Additionally, we secure access to mission critical infrastructure in terms of solid locations with limited influence from sea lice and a good environment, as well as significant post-smolt and processing capacity,” Rønning said in a press release.
Vartdal Gruppen is a fully integrated salmon farmer with four licenses for production of salmon, with a total maximum allowed biomass of 3,120 metric tons (MT).
The company has its own production of smolt and post-smolt, carried out at a land-based facility utilizing salt-water flow-through technology. Its post-smolt facility has a capacity for 670 MT standing biomass that gives it an annual production at land of approximately 1,400 MT (live-weight).
According to a filing on the Oslo Stock Exchange Oslo Børs, the transaction values Vartdal Gruppen at NOK 1.52 billion (USD 174 million, EUR 153.7 million) – split with NOK 1.44 billion (USD 164.8 million, EUR 145.6 million) for the firm’s salmon-farming operations and NOK 80 million (USD 9.2 million, EUR 8.1 million) for its processing and freezing facilities.
The transaction will be fully financed through debt facilities provided by Måsøval's main bank, DNB, as well as through a share settlement to the seller of 4,761,904 new shares in Måsøval AS valued at NOK 42.00 (USD 4.81, EUR 4.24) per share.
Vartdal Invest AS has agreed to a lock-up period for the consideration shares of six months from the closing date of the transaction, while the managers from Måsøval's IPO process, completed in June 2021, have agreed to waive the lock up agreements entered into in order to facilitate the issuance of the consideration shares to Vartdal Invest AS.
The acquisition of Vartdal Gruppen will eventually provide Måsøval with an increased harvest in PA 5 of approximately 6,900 MT (head-on gutted) as well as a production unit with a total yearly production of approximately 9,800 MT.
Vartdal Owner Ottar Vartdal said he was “satisfied to be handing over his legacy” to Måsøval.
“Måsøval has a great platform to further develop the company and the workplaces," Vartdal said. "Måsøval’s existing volume in production in [PA 5] will together with Vartdal Gruppen ensure improved utilization of sites, smolt, and processing facilities once it is integrated.”
The transaction has been approved by Måsøval’s board, but is subject to approval from competition authorities and an extraordinary general meeting at Måsøval in December. As such, the closing of the transaction is expected to occur by end of Q4 2021.
Photo courtesy of Måsøval
