Cermaq on Thursday announced it entered into a definitive share agreement with Altor and Bain Capital for the sale of its fish feed division.
The deal puts EWOS at an enterprise value of NOK 6.5 billion (USD 1.08 billion, EUR 826.9 million), which will be payable in cash upon completion.
The transaction is expected to close by the end of October.
The transaction will allow Cermaq to free up significant funds to be used to reduce debt to ensure a continued solid capital structure and compliance with all financing commitments for the remaining operations, and to realize an extraordinary dividend to its shareholders.
Subject to completion of the transaction, Cermaq expects an extraordinary distribution to its shareholders of around NOK 4.5 billion (USD 749.2 million, EUR 572.5 million) to NOK 5 billion (USD 832.5 million, EUR 636 million) — or NOK 48 (USD 8, EUR 6) and NOK 54 (USD 8.99, EUR 8.87) per share.
Cermaq will continue to further develop its farming activities in Norway, Canada and Chile.
Cermaq supports a further consolidation of the farming industry in selected geographical areas and will consider various solutions to further develop the country’s position and further maximize residential shareholder value.
“Alto and Bain Capital have followed the aquaculture industry for several years, and see great potential in working with EWOS’ management team to further develop its world leading fish feed business,” said Cermaq.
ABG Sundal Collier acted as financial advisor and Schjodt as legal advisor to Cermaq for the transaction.
