Nordic private equity firm Bluefront Equity has invested in Svolvær, North Norway-headquartered Proff Kulde AS, a supplier of refrigerant and heating solutions for the seafood industry.
“Although Proff Kulde is a relatively small company, its pace of innovation and sustainability focus is far ahead of other companies in this segment. Targeted R&D efforts have for many years been key to develop cost-efficient and sustainable solutions with minimal environmental impact,” Bluefront Equity Partner Simen Landmark said.
Several years ago, Proff Kulde chose to invest in its own technology development by improving traditional solutions that were not perfectly suited to the seafood industry.
Robustness, improved user-friendliness and increased efficiency in refrigeration and heating systems were the cornerstones of the strategy. This has resulted in a broad product portfolio that consists of in-house designed, patented refrigeration and heating solutions based on CO2, which is a natural refrigerant, with associated control systems.
Proff Kulde has, amongst other things, developed CO2-based RSW-solutions (refrigerated seawater) which are popular for cooling of fish on board fishing vessels and in the land-based aquaculture industry.
“Bringing a professional seafood and sustainability investor in as shareholder will be positive for both our customers and us. Improved access to capital will allow to further increase our pace of innovation and production capacity. A continued strong commitment to innovation and product development in the coming years is a plan that is agreed between the management and Bluefront Equity,” Proff Kulde’s Managing Director and Co-founder Mathias Ingebrigtsen said.
Bluefront Equity’s investment is conducted through a combination of a share issue and purchase of shares from current shareholders. The parties have agreed to not disclose the financial details of the transaction.
Following completion of the transaction, Bluefront Equity will own approximately 60% of Proff Kulde. The remaining shares are owned by the company’s co-founders and management, including Ingebrigtsen, Chief Technology Officer Morten Andre Engen, and Chief Financial Officer Lasse Pedersen.
Former executive vice president of BioMar, Jan Sverre Røsstad, becomes chairman of Proff Kulde’s board of directors. Landmark also joins the board of directors.
“Proff Kulde fits perfectly with our investment mandate. We look for sustainable companies that have significant growth potential and can create everlasting improvements in the seafood value chain,” Landmark said.
The company has grown steadily since the company was established in 2013. In 2021, it delivered revenues of NOK 35 million, with an operating profit of NOK 4 million. This year the company expects 20-30% revenue growth.
Ninety percent of Proff Kulde’s revenues derive from the fishery and fish farming industries. The remainder is from other land-based industries that require energy efficient and environmentally friendly refrigerant solutions.
Proff Kulde’s main geographical market is North Norway, but the company also serves customers elsewhere in the country. The company has 17 employees.
“A key reason for bringing Bluefront Equity onboard as shareholder is because there is a large untapped potential for our technology throughout Norway and the rest of Europe. An increased focus on international markets will be an important part of our strategy going forward. We want to create more jobs here in Svolvær,” Ingebrigtsen said.
Bluefront focuses solely on the seafood industry, with the fund primarily investing in small and medium sized supplier companies that contribute towards making the seafood value chain more sustainable.
