Marel to buy Icelandic fish processing equipment supplier Valka
Marel has entered into an agreement to acquire fellow Icelandic processing equipment company Valka ehf., with the aim to “be in a stronger position to transform the fish processing industry in partnership with customers.”
In a press release, Marel confirmed that it aims to acquire 100 percent of Valka's share capital.
An agreement has already been reached to acquire over 90 percent of the share capital of Valka, and the remaining shareholders will be offered to sell their shares on the same terms, it said.
The transaction is subject to customary closing conditions, including anti-trust approval and is expected to be completed later this year.
According to Marel, the transaction will strengthen its full-line offering to the fish processing industry and increase scale to serve customer needs better.
The purchase price will be 50 percent paid in cash and 50 percent in Marel shares, except for smaller shareholders who will have the option of a full cash payment. Sellers that receive Marel shares will undertake a lock-up period of 18 months.
“We are excited to join forces with Valka, an innovative provider of advanced processing solutions for the fish industry. Valka is technologically very strong and has good insight into market needs,” Marel Fish Executive Vice President Guðbjörg Heiða Guðmundsdóttir said. “Together the companies will build on the best of both, increase scale, accelerate innovation and strengthen our combined offering to continue to provide our customers with best-in-class processing solutions in the growing food processing industry.”
Valka's founder and CEO, Helgi Hjálmarsson, will take on a role as director of solution integrity within Marel.
The companies’ combined product offering will make them stronger together and even better at providing full-line solutions for our customers, Hjálmarsson said.
“I look forward to start presenting those solutions to our current and new customers that we can service even better now with Marel's extensive global sales and service network. I am also really excited to start working on transferring Valka’s technology over to other industries where we see great opportunities. I am confident that by joining Marel, we are creating a winning team that is well-equipped for greater success,” Hjálmarsson said.
Established in 2003, Valka has built up a product portfolio that includes waterjet cutting, trimming, and grading solutions for whitefish and salmon. The company generates annual revenues of around EUR 17 million (USD 20.2 million) and employs 105 people.
Photo courtesy of Marel