Norwegian investment group Bewi Invest is acquiring a 44.4 percent stake in one of Norway's largest privately held salmon farmers, SinkabergHansen, for NOK 2.2 billion (€194.9 million/$211.8 million), the company said in a stock exchange announcement on March 29.
The price gives SinkabergHansen an enterprise value of NOK 5 billion (€443 million/$481.3 million).
The transaction will comprise a combination of cash, hybrid bonds and newly issued shares in Bewi Invest, whereby the sellers will become significant minority shareholders in Bewi Invest.
A private placement in Bewi Invest of NOK 500 million (€44.3 million/$48.1 million) to NOK 700 million (€62 million/$67.4 million) is contemplated to finance the cash consideration of the transaction.
The deal is expected to close on April 28.
SinkabergHansen produces around 35,000 metric tons of salmon per year.
It is located in central Norway, with operations in Naeroysund, Bindal, Bronnoy and Heroy. Its head office and processing plant are located on Maroy.
In 2022, the company had revenue of just under NOK 3.5 billion (€308.9 million/$335.7 million) and earnings before interest, taxes, depreciation and amortization (EBITDA) of NOK 796 million (€70.5 million/$76.6 million).
Bewi said SinkabergHansen is a “highly attractive addition” to its portfolio and a “milestone in the ongoing creation of a strong and profitable seafood business.”
Bewi Invest is a Norwegian industrial owner with a portfolio mainly comprised of companies within industry, real estate and seafood.
The deal will complement Bewi Invest’s other investments, mainly 51 percent ownership in the industrial company Bewi and 43 percent ownership in the real estate company KMCP Properties, both of which are listed on the Oslo Stock Exchange.
“The transaction represents an important milestone for Bewi Invest in establishing a strong foothold within seafood," said the group.
Bewi Invest has already received binding commitment from new and existing investors exceeding NOK 500 million (€44.3 million/$48.1 million) and intends to launch the private placement during April.
In addition, the transaction and private placement has reinforced Bewi Invest’s intentions to list on the Oslo Stock Exchange or the Euronext Growth Oslo, and the board of directors intends to apply for such a listing within 12 months from the closing of the transaction.
For sale for one year
In April last year, the family behind SinkabergHansen, the Berg-Hansen family, revealed it was considering selling its shares.
"When we met the people behind Bewi Invest, we found a company that has the values and commitment that we are concerned with," said Hallbjorn Berg-Hansen, spokesperson for the Berg-Hansen family.
"It's no secret that we find the regulatory framework conditions for businesses like ours increasingly challenging. We also do not hide the fact that a significantly tougher taxation of value creation, which our company stands for, has been the trigger for our decision to sell."
