Swiss Lachs acquires the pike-perch producer Basis 57

Land-based salmon producer Swiss Lachs announced the acquisition of Basis 57 operations. Known by its brand name Gotthard-Zander, the pike-perch farmer's facilities are located in the commune of Erstfeld, Canton of Uri, Switzerland, next to the northern mouth of the world's longest railway tunnel.

The takeover comes after a financial bottleneck led Basis 57 to apply for an interim debt restructuring at the Uri District Court Presidium in December 2023. The court appointed BDO as administrator, which found an interested party in Swiss Lachs, which has been operating a successful land-based salmon farm in Switzerland for years and has shown interest in continuing and expanding the pike-perch producer's operations.

Maintaining pike-perch production and increasing salmon

As the current Basis 57 facility is utilizing just a fraction of its capacity, the transaction will allow Swiss Lachs to significantly expand its production capacities in the coming years. Moreover, approvals are already in place for significant additional expansions, which will further shorten the "time to market" for the land-based salmon farmer.

According to Swiss Lachs' release, its plan is, on the one hand, to continue pike-perch farming as long as it is economically viable and, on the other hand, to use the available production capacities to rapidly increase salmon farming and meet the high demand for salmon delicacies of its brand.

Thanks to several strong distribution partners and quality recognition by many chefs, Swiss Lachs is right now the leading brand for quality Swiss responsibly farmed salmon. So, while the main farm in Lostallo - where the product is also processed and even sold - remains the core, planning for its expansion has progressed significantly in the last 6 months.

In fact, Swiss Lachs has already announced its intention to open a new farm shop in Erstfeld, similar to the one in Lostallo where customers can shop directly. "In the future, customers in Erstfeld can exit the highway and conveniently purchase both Gotthard-Zander and the delicious Swiss Lachs products on their way," the announcement said.

Continuity is granted and most of the jobs maintained

According to the statement issued by Basis 57, the transaction with Swiss Lachs includes the acquisition of all operationally relevant assets, existing inventories, fish, and most of the labor relations. The only item that is not part of the operation is the land lease parcel on which the rearing facility is located, as the Uri Canton Corporation exercised its pre-emptive right in advance of the transaction.

However, the Corporation itself has already signed a long-term lease with Swiss Lachs, granting an option to purchase and expand the facility. "The contracts concluded with Swiss Lachs form the basis for a sustainable and further developable fish farming facility while retaining jobs. By exercising the pre-emptive right, the Uri Corporation was able to bring about a solution that ensures the use of the infrastructure in Erstfeld as originally planned," the Corporation President, Kurt Schuler, explained.

"It is in the interest of the Canton of Uri that fish continue to be farmed in Erstfeld and jobs can be retained. With Swiss Lachs, a partner has been found who has successfully proven over the past 10 years that he understands both farming and distribution," added Urban Camenzind, Director of Economic Affairs of the Canton of Uri.

The harmony between the Corporation and the new owner is also clear from the words of Marcel Rüegg, the President of Swiss Lachs, commenting on the acquisition. "We want to continue and expand the very well-started cooperation with the Uri Department of Economic Affairs, the Uri Corporation, and other stakeholders to the benefit of all," he stated.

"It is important to us that this is operated sustainably on all levels: For the environment, for the fish, for the employees, and ultimately for the shareholders. If any of these aspects are not sustainable in the long term, then the others will not have a sustainable future in the medium term either," Rüegg concluded.