The feed producer Alltech and fish Farmer Finnforel have acquired Raisio's aquafeed business, including a fish-feed production facility in Raisio, Finland, for EUR 7 million (USD 7.5 million). The joint venture partners claim that the acquisition will complement Finnforel's circular economy sustainable fish farming chain, as well as improve aquaculture producers' access to Alltech's nutritional technologies.
The feed producer Alltech and fish Farmer Finnforel have acquired Raisio's aquafeed business, including a fish-feed production facility in Raisio, Finland.
For both companies, Raisio matches their interest. On the one hand, for Alltech aquaculture is one of the world's fastest-growing sources of protein at the same time that is one of the key focus areas for their business. On the other hand, Finnforel is planning a rapid expansion into global markets with so-called "gigafactories" specialized in sustainable aquaculture.
Meanwhile, the sale of Rasio represents the elimination of a deficit entity from its books. As the company recognized there was an impairment loss of €4.1 million on Raisioaqua's fixed assets in its Q1 2022 earnings before interest and taxes. Its aquafeed unit had sales of €24.9 million ($25.6 million) in 2022 and its EBIT was -€5.1 million (-$5.4 million).
The debt-free acquisition has been carried out through a share deal. Raisioaqua Ltd. has already transferred, as the transaction did not require approval from the federal antitrust authorities. Moreover, according to Raisio, the 27 employers will maintain.
As the CEO of Alltech Coppens, Ronald Faber, said: "Finnforel and Alltech Coppens have been working together for several years on sustainable aquaculture practices. This joint acquisition reflects the ambition of both companies, our shared values, and the strength of our partnership."
Alltech is an American company, located in Nicholasville, Kentucky. Its operations are based on animal feed, meat, brewing, and distilling. Alltech develops agricultural products for use in both livestock and agriculture, as well as products for the food industry.
In 2017 Kaj Arvonen, Pekka Viljakainen, and Petri Heino have the idea of Finnforel and founded the business. Based in Finland they are currently working with Recirculating Aquaculture System. A system that produces around 1,000 metric tons (MT) of rainbow trout per year in three land-based pilot farms.
