The deal has been in the works for some time now, but yesterday the purchase of a majority stake in Norwegian salmon industry infrastructure company Frøy by Goldman Sachs became official.
Goldman Sachs Asset Management-owned Falcon Bidco has officially closed the acquisition of a further 72.11% stake in Frøy for NOK 6.6 billion, sold by SalMar-owned company NTS.
Goldman Sachs, through other indirectly wholly-owned companies, already owned 17.24% of shares in Frøy. This latest purchase brings its total stake in the company to 89.35%.
On 20 July 2023, the companies announced that all regulatory approvals needed for the completion of the sale had been received, and yesterday issued a statement confirming the purchase had been completed.
As part of the acquisition, Goldman Sachs will also make a mandatory offer for the rest of the shares in the company. This means that all Frøy shareholders will have the chance to sell their shares at NOK 76.50 per share.
Frøy, a leading integrated provider of aqua services to the Norwegian salmon farming industry, released a trading update for Q2 in July showing an uptick in both revenue and EBIT in advance of the sale.
"Wellboats and service vessels are vital to enabling best-in-class farming practices and Frøy is at the forefront of driving sustainability," Goldman Sachs Asset Management Global Co-Head of Infrastructure Tavis Cannell said in a statement announcing the purchase offer back in June.
Frøy CEO Tone Foss said in a Norwegian language press release that he was pleased the company will have "solid owners" who will "contribute to further growth and more jobs along the Norwegian coast".
"The acquisition confirms our solid business model and provides a solid foundation for further development of the company," he added, calling the sale "a new and exciting chapter".
Frøy owns a fleet of 80 vessels, providing services including fish transport, sorting, counting, cleaning of nets, and treatment for diseases and lice, in addition to inspection, installation and maintenance of salmon farming sites.