Avramar secures lifeline in Spain, amid closures and likely sale of Greek operations

Avramar, the largest aquaculture producer in the Mediterranean based in Valencia, with operations in both Spain and Greece, is undergoing significant restructuring in response to challenging economic conditions, hit hard by declining fish sales and increased costs for raw materials, including feed.

As a result, the company, which is owned by the investment funds Amerra and Mubadala, has closed some of its facilities, including the Acuícola Marina located in Burriana, Castellón, as part of a cost-cutting measure to streamline operations - although it has decided to retain its operations in Calp, Spain, even as it faces local opposition to the expansion of its marine farm there.

Avramar group is actively exploring the sale of its operations in Greece, which account for approximately 70% of its total production.

As we reported in March, the group has recently secured an interim financing agreement amounting to EUR 20 million - an essential condition to start the sale process of Avramar, which will be carried out by Deloitte, appointed as transaction advisor by the lending banks. The Avramar Group also recently appointed a new CEO, Eugenio Meschini.

However, as reported this week in the Spanish media outlet El Economista, Avramar's Spanish division, Avramar Ibérica, has managed to secure a lifeline by renegotiating its debt with the majority of its creditors.

This financial restructuring includes maintaining all current lines of credit, with a total value of EUR 39.5 million over four years, and extending the payment terms for most of its loans.

Avramar is the result of the union under one name of four leading companies from Greece and Spain and, consequently, the largest aquaculture company in the Mediterranean. The company offers full traceability of its sea bass, sea bream, rock bass (Meagre), and pagrus thanks to its fully integrated value chain due to its 10 hatcheries, 72 fish farms, 3 fish feed factories, 3 processing plants, 12 packaging facilities, and a worldwide distribution network to more than 700 customers in more than 30 countries.