Norway-based krill harvester and processor Aker Biomarine announced Wednesday it reached an agreement to sell off ownership in its feed ingredients business.
Aker Biomarine, controlled by Kjell Inge Rokke's Aker Group, said it reached an agreement to sell the division to a newly established company owned by American Industrial Partners and Aker Capital.
American Industrial Partners will hold 60 percent of the group, while Aker Capital will hold the remaining 40 percent.
The deal values the feed ingredients business at NOK 6.3 billion ($590 million).
The division owns and operates three harvesting vessels and a support vessel targeting krill in Antarctica. Aker Biomarine began exploring "strategic alternatives" for the feed ingredients division earlier this year.
Following the sale, Aker Biomarine will focus on its human health, consumer health and emerging business operations.
Aker Biomarine saw its earnings before interest, taxation, depreciation and amortization (EBITDA) fall 21 percent to $58 million in 2023, but saw sales jump by more than 20 percent from the year prior to $335.3 million.
Its feed ingredients business accounted for a significant portion of those earnings. The division posted EBITDA of $49 million in 2023, on revenues of $156 million.
Following the sale, Aker Biomarine will focus on its human health, consumer health and emerging business operations. The company reached a long-term supply contract with the newly formed feed division.
Aker Biomarine will use the proceeds from the sale to refinance its debt and distribute a dividend to shareholders.
