Seafood processor Bakkafrost has entered into an agreement to acquire a majority stake in UK peer The Scottish Salmon Company (SSC) with an option to take control of the whole company if the deal is successful.
Bakkafrost, based in the Faroe Islands, will initially purchase the 68.6% stake in SSC currently held by Northern Link for NOK28.25 (US$3.2) per share. If that deal goes through, a mandatory tender offer will be triggered for all of the remaining shares, which would equate to a total overall transaction price of GBP517m (US$638.9m) for the business.
In July, Edinburgh-based SCC, which supplies Hebridean Origin Scottish salmon, announced it was considering options for the company following a strategic review launched a few months earlier, including a partial or complete sale of the business. SSC is listed on the Oslo stock exchange.
Its chief executive Craig Anderson said: “The board of SSC considers this offer to be in the best interest of all shareholders as it realises the material value that has been created after nine successive quarters of growth. The board initiated the independent strategic review in order to assess options to realise value and deliver future growth from the business.
“The review has been successful in terms of the volume and quality of the companies that have participated in the process, and has resulted in this acquisition to create a major global salmon farming business.
“I’m proud of the way the SSC team has conducted itself under my tenure, and they have all contributed to building a highly successful business that has ultimately become a compelling investment opportunity for Bakkafrost. The management team will now work closely with the new owners of the business to understand its strategic vision and implications for all SSC stakeholders.”