Norway’s Cermaq has entered into a “definitive” share purchase agreement with Altor and Bain Capital for the sale of its fish feed business, EWOS.
The total value of the sale is expected to be NOK6.5m (US$1.1m).
Cermaq says the sale will enable it to free up “significant funds” that will be used to reduce debt to ensure a continued solid capital structure.
It will also use the funds to distribute dividends to its shareholders of between NOK48 (US$8) and NOK54 (US$9) per share.
Under the agreement, Cermaq’s fish farming company, Mainstream, will enter into a long term feed agreement with EWOS on market terms. The six year contract includes exclusive deliveries from EWOS for the first two years.
Cermaq after the sale it will continue its efforts to further develop its farming activities in Norway, Canada and Chile, as well as further maximising its remaining shareholder value.
The deal is expected to be completed by October 2013.
EWOS supplies feed and nutrition for the international aquaculture industry, operating in all four of the world’s major salmon farming regions: Norway, Canada, Chile and Scotland.
