Cermaq Acquires the Chilean Company Cultivos Marinos Chiloé04 October 2012
NORWAY and CHILE - Cermaq ASA has entered into an agreement to acquire all shares in the Chilean farming company Cultivos Marinos Chiloé S.A (CMCh) for a total enterprise value of $110 million.
The transaction will increase Cermaq’s total production capacity by almost 25 per cent to approximately 180,000 tonnes. The transaction strenghtens the group’s production capacity in Chile and the share of value added products.
As a consequence of lower prices and increased production, CMCh has over the last year faced a challenging financial situation. The shareholders have therefore considered different solutions to secure the future development of the company, which has led to discussions and finally the agreement with Cermaq.
"The acquisition of Cultivos Marinos Chiloé is important to support Cermaq’s growth ambitions in Chile," says Cermaq’s CEO Jon Hindar in a comment.
"We currently observe a challenging market for most farming companies, but we are convinced that a continued increase in the global demand for salmon will strengthen the industry’s profitability. The access to more capacity in one of the most interesting global salmon areas is therefore of the utmost importance for Cermaq," Mr Hindar continues.
"This transaction contributes to secure control over more production areas and will over time reduce the group’s biological risk and total cost,” Mr Hindar continues.
"Even if EWOS already is the company’s main supplier of feed, the transaction secures the sales volume going forward as well as reduces the capital employed and credit risk related to this customer," Mr Hindar concludes.
TheFishSite News Desk