Oslo, Norway-headquartered salmon processor Milarex has acquired San Diego, California, U.S.A.-based ULTCO, with an eye toward expanding its North American presence.
The two companies had worked together through a product development partnership for the past several years, and had launched several foodservice and retail products together. ULTCO and Milarex have agreed not to disclose the terms of the deal.
“ULTCO provides an appealing opportunity to continue the remarkable growth story Milarex has experienced since its start in 2016. The prospects for safe, convenient, and quality products in North America are attractive and we expect to realize significant further growth in the years ahead,” Milarex CEO Thomas Farstad said. “Through this transaction, we are transforming Milarex from a European player into a global company, while increasing net sales of the combination to EUR 300 million [USD 357.6 million].”
Milarex began operations in 2016 and produced 17,000 metric tons (MT) of seafood products in 2019. It operates a production facility in Slupsk, Poland, from which it supplies most of the retailers in Germany. It also has a customer base that extends across Europe into Scandinavia, Japan, and North America, and has distribution offices in Germany, Italy, the United Kingdom, and France. It was acquired by Summa Equity in June 2020.
ULTCO, which operates across the U.S. and in Canada, will retain its brand name and management under Milarex’s ownership, and will continue to develop its own seafood products and conduct import and distribution operations in North America. Milarex will sell its products through ULTCO, and ULTCO will continue working with its existing partners to complement its product range, the company said in a press release.
Currently, ULTCO imports Icelandic salmon, Akvafuture EcoSalmon, Norwegian salmon and fjord trout, and Glitne halibut. ULTCO has an in-house design team and packaging specialists on staff and has created private-label programs for major retailers and club stores; customized value-added formulation including cures, marinades, and recipes; and ready-to-eat seafood dishes for fast casual and multi-unit restaurant groups that are unable to prep seafood on-site.
Farstad said he expects the acquisition to strengthen product development and reduce time-to-market for both companies’ products.
“ULTCO and Milarex are complementary companies, and by coming together, I am convinced we can improve our total service to the market and better fulfill the strong demand in the North American market,” Farstad said. “[ULTCO’s] founders have done an excellent job establishing and growing ULTCO into the company it is today, and we are delighted to welcome them together with their outstanding core staff to our international seafood team.”
The market for salmon in the U.S. is growing fast, with products that emphasize convenience, new flavors and concepts, and sustainability doing especially well, according to ULTCO Co-Founder Mike Fairman.
“Milarex’s disruptive processing technologies and product innovation capabilities have enabled ULTCO to expand our offerings in recent years. When coupled with our shared values around sustainability, transparency, and strong farming partnerships, our companies are uniquely aligned to bring value to our customers,” Fairman said.
Photo courtesy of Milarex
