Cermaq Sells Fish-Feed Unit to Bain, Altor for $1.1 BillionStephen Treloar
Cermaq ASA said it agreed to sell its Ewos fish-feed unit to Bain Capital LLC and Altor Equity Partners in a deal that values the business at 6.5 billion kroner ($1.1 billion).
The price, which is 300 million kroner more than indicated when the deal was announced on June 17, will be paid in cash and is expected to close by the end of October, the Oslo-based company said in a statement today. Cermaq will use the money to reduce its debt, fund its salmon-farming operations and to pay an extraordinary dividend of between 48 kroner and 54 kroner a share, it said.
Cermaq, in which the Norwegian government owns a 59.2 percent stake, held talks about selling units after snubbing a takeover bid from Marine Harvest ASA as too low. The company will now focus on its farming unit, which has operations in Chile, Canada and Norway.
“Cermaq supports a further consolidation of the farming industry in selected geographical areas and will consider various solutions to further develop the company’s strong position,” it said in the statement.