Norwegian land-based aquaculture company Andfjord Salmon AS has welcomed new strategic investment from both Nutreco and Holmøy Group as part of a NOK 38 million (US$4.3 million) private placement. At the same time, Andfjord Salmon has also entered into an operational feed supply agreement with Nutreco’s aquafeed business, Skretting.
Nutreco is investing NOK 20 million ($2.2 million) in Andfjord Salmon, which is located at Kvalnes on the island of Andøya, while Holmøy will invest NOK 8 million ($898,000).
“We are delighted to enter into these agreements, which will bring on board two strategic investors to Andfjord Salmon and secure supply of our preferred feed,” Andfjord Salmon CEO, Martin Rasmussen, said.
Vesterålen-based Holmøy is one of Norway’s largest whitefish and salmon seafood companies. The group’s main activities are operation of trawlers through Prestfjord AS; ocean-based fish farming through Eidsfjord Sjøfarm AS, which has an annual production of 20,000 tonnes of Atlantic salmon; and Holmøy Fryseterminal, which offers cold storage of fish and other services.
Holmøy is investing in Andfjord Salmon through Eidsfjord Sjøfarm, which already owns 66,400 shares in the company.
“Fish is our area of expertise, and we are dedicated to developing new technologies and production methods. Investing in Andfjord Salmon is therefore a natural commitment to an industry we are passionate about and where both companies are strongly connected to Vesterålen and north Norway,” Holmøy CEO, Knut Roar Holmøy, said.
“We also hope that this investment can stimulate discussions about further cooperation opportunities between the Holmøy group and Andfjord Salmon.”
Nutreco Investment Director, Erik Tveteraas, explained, “Our investment in Andfjord Salmon fully supports our ambitions to provide solutions to a dynamic and important sector that is essential to ensure that aquaculture continues to meet the seafood needs of our growing global population in a sustainable way.”
In conjunction with the investment, Andfjord Salmon’s new feed supply agreement with Skretting is for a diet that is specifically tailored to Andfjord Salmon’s flow-through technology.
Skretting experts will also participate in a technical advisory committee that provides advice to Andfjord Salmon’s production protocols and will regularly evaluate production KPIs with the objective of further improving conditions for the fish.
“Our aim is to have the world’s most fish-friendly and sustainable fish farming facility of its kind. That is why we are entering into a long-term agreement with a partner that is dedicated to the continuous development and evolution of fish feed ingredients and combinations, driving the sustainability transformation within raw materials for fish feed,” Rasmussen said.
“This cooperation with Skretting will help to optimise fish welfare and growth conditions while keeping our environmental footprint as small as possible.”
Sparebank1 Markets AS acted as sole financial advisor to Andfjord Salmon in the transaction.
