Benchmark Holdings has announced the sale of its genetics arm to Starfish Bidco to streamline operations and concentrate on its advanced nutrition and health business areas.
The sale, which is expected to complete during the first quarter of 2025 subject to shareholder and regulatory approval, represents an enterprise value of up to £260 million.
Proceeds from the sale will be used to return capital to shareholders and to reduce the company’s leverage by repaying the group’s unsecured bond and drawn amounts under a revolving credit facility provided by DNB Bank.
“The transaction will unlock significant value and enable us to return capital to shareholders,” said Trond Williksen, Benchmark’s chief executive.
“The disposal will also allow us to focus all our efforts on developing the significant potential of our continuing business areas of advanced nutrition and health. In addition, it will enable us to reduce complexity and streamline the group structure to significantly reduce costs.”
For the twelve months to 30 June 2024, the genetics business generated revenue of £57 million and adjusted EBITDA of £14.5 million. The net assets of the genetics business as at 30 June 2024 amounted to £52.8 million.
The disposal concludes the strategic review announced on 22 January 2024 which preceded a search for bidders, of which Starfish Bidco, a wholly-owned subsidiary of Novo Holdings, was one such interested party.
“We are very pleased to announce plans to acquire the Benchmark genetics business,” said Aleks Engel, partner at Novo Holdings.
“Both animal and plant genetics hold immense potential to transform the global food industry, enabling more efficient and sustainable ways to feed a growing population.
“In particular, advancements in aquaculture genetics such as those in the salmon industry, present significant opportunities to improve productivity, resilience and environmental outcomes.”
