Grieg Seafood and Volden Group merge

The new company will be named Grieg Seafood AS, and looks to be a leading player within fish farming in Europe and North America. The company is aiming for a stock exchange listing within the second half of 2007.

According to a press release, the merged Grieg Seafood AS will possess considerable, unexploited production rights, both in Rogaland, Finnmark and Canada. These will be advanced during the next few years, and in 2006 total production will be 27,000 tons, while the new company will reach a yearly production of approximately 55,000 tons of salmon and trout in 2008, equivalent to 54 Norwegian concessions. The merger creates a basis for what will become the third largest fish farming player in Norway production wise – after Pan Fish and Lerøy. Now the company will grow further through organic growth and possible aquisitions.

"Two active owning families, Grieg and Volden converge as equivalent partners to establish a future oriented, totally integrated seafood group, which has ambitions to take the lead in the ongoing consolidation of the industry. Internationalisation and structural changes demands larger units in the fight for customers, capital and competence. As a regional and national player with ambitions for further growth, we will now have striking power to become a leading fish farming player in Europe and North America. At the same time we reinforce initiatives concerning Volden's strong brand name within seafood, Blue Silver," says Per Grieg jr, Managing Director of Grieg Seafood AS.

Within the merged company, Volden Group AS will formally become a subsidiary company of Grieg Seafood AS. The Volden family today owns 80 per cent of Volden Group AS, while Origo Kapital owns 20 per cent. In connection with the merger, Origo capital sells their share. The Volden family will receive a payment in cash as well as a 34 per cent share of the new company. Grieg Holdings AS will own the rest of the stocks.

"The merger with Grieg Seafood AS is a strategically right move that will provide Volden Group AS with an opportunity to still be a locally rooted, viable, vertically integrated company, at the same time as we become part of a bigger company with international branches and healthy ambitions for further growth. The merger will provide the company with big opportunities for further growth, and will secure jobs and competence in Western Finnmark going forward," says Haakon Volden, Managing Director of Volden Group AS.

"Utilisation of existing production rights will make Grieg Seafood able to see a considerable increase in the production of salmon and trout during the next few years. In addition to this, we have ambitions for further growth, both organically and through aquisitions in the target areas of the company; Finnmark, South-West Norway and British Colombia in Canada. Moreover, Volden has a particularly good position in Japan, and has a unique base for export to Russia through the industry's shortest route for Norwegian salmon to St. Petersburg and Moskva. As a measure in the growth process, we aim for a stock-exchange listing in the second half of 2007," says Grieg jr.

Grieg Seafood will have its head office in Bergen, with enterprises in Rogaland, Finnmark and British Columbia in Canada. Per Grieg jr. will be the Managing Director of the company. A sales and marketing division will be established in Alta, and Volden Group AS will endure as an individual company with a main office in Finnmark.

The merged company will also own eight per cent of Marine farms ASA, which was listed on the stock-exchange last week, and 30 per cent of Tustna Kveitefarm AS. As part of the merger the ownership of Grieg Cod Farm AS will be taken out of the company, being owned 50 per cent by Grieg Holdings AS and 25 per cent by Selvaag Invest AS and Snefonn AS each.

Information about the size of the deal and pricing of the companies will stay confidential.