Paine Schwartz Partners (formerly Paine & Partners)-owned Scanbio Marine Group will most likely be sold during the second half of the year, CEO John Binde told IntraFish.

"It's not a formal decision, and I want to stress that, but it's well known that we will be divested at some point," he said. "A decision will probably be taken at a board meeting this September."

An official sales process could start shortly after, he said.

US investment firm Paine Schwartz Partners acquired the Trondheim-based fish byproducts processor for an undisclosed amount in summer 2011.

Around two years ago, the investment firm tried to sell Scanbio -- without success, however, Binde confirmed.

Paine Schwartz Partners didn't achieve the desired price, "decided to move on and prove we managed to achieve the budgeted financial results," Binde said. "We're ready now."

So far, no financial advisor has been engaged.

One alternative could also be a listing on the Oslo Stock Exchange, Binde told IntraFish.

"We may be have a smaller team, but we are bigger than Norway Royal Salmon (NRS) was when listed," said Binde, who was CEO of NRS between 2004 and 2014.

Challenging years

Scanbio reported a jump in its 2017 earnings, but the bottom line remained still in the red.

"Things are improving year-on-year," Binde said. "The first few years under Paine's ownership were challenging."

He said he was pleased with the results reported last year.

"Despite difficult market conditions, we increased both sales and earnings," he said. "The year was characterized by lower prices for common fish oil and fishmeal, products we compete with."

Last year, the company also inked "one of our most important contracts" for the purchase of 40,000 metric tons of byproducts each year from Grøntvedt Pelagic.

Scanbio Marine supplies three types of products" fish oil, protein concentrate and fishmeal. It sources fish waste and raw material from whitefish, pelagic fish and salmonids, giving it a total of nine product lines.

The group has processing plants in Bjugn and Lysoysund in Trondelag. Salmon oil is the largest product, Binde said.

Of the company's finished products, around half are sold in Norway, while the rest is exported to customers mainly in Europe and Asia.

Key figures Scanbio Marine Group results (in million NOK)