NRS Farming, a subsidiary of Norway Royal Salmon, has acquired 100% of SalmoNor creating the world’s sixth largest salmon farmer.
SalmoNor is currently owned by seafood giant, NTS, which won a bidding war against Mowi and SalMar to acquire the company only last June.
SalmoNor is a fully integrated salmon farming company in central Norway with an estimated harvesting volume of 36,500 tonnes in 2022 and 39,000 tonnes in 2023. NRS sees a significant potential in combining the two companies to improve smolt, grow-out, development licences and sales. The transaction has the potential to increase production to around 100,000 tonnes in Norway and 24,000 tonnes in Iceland as well as creating new job opportunities.
“We are enthusiastic over a combination with SalmoNor,” said Klaus Hatlebrekke, interim chief executive at NRS.
“Through the merger we are now combining an impressive operational competence across the organisations, the most important foundation for continued growth and development, and establishment of new jobs,” he added.
SalmoNor is valued at an enterprise value of NOK8.297 million (€836,000) with an estimated equity value at the time of closing of NOK6.35 million (€640,000). The deal will be financed through a combination of consideration shares in NRS (68.14%) with the remainder in cash raised through external investment, existing funds, sales of assets or a combination of these.
