Benchmark Holdings may be sold
Over the past three years, Benchmark has seen significant growth in revenue, profitability, and cash conversion. In 2023, the company reported a 7% revenue increase and a 15% rise in adjusted EBITDA, with operational cash conversion improving from 35% to 58%.
However, the company said, "The Board believes that the current share price materially undervalues the combined value of Benchmark’s businesses and the long-term prospects of the Company, which may at least in part be due to the tightly held and illiquid nature of its ordinary shares."
Full or partial sale of Benchmark is on the cards
Benchmark is therefore considering its strategic options, including a full or partial share of the company, after consulting with its major share holders.
Benchmark said the UK Takeover Panel has agreed to a formal sale process, allowing confidential discussions with potential bidders without public identification or adhering to the usual 28-day deadline.
The company has now entered an "offer period", where interested parties should contact Benchmark’s financial advisers, Evercore and Rabobank. The sale process will involve a preliminary phase with an information pack and submission of non-binding indicative offers, followed by a selective second phase.
Benchmark specializes in biotechnology products and solutions to enhance aquaculture productivity and sustainability. It has a strong market presence in genetics, early-stage nutrition, and sea lice solutions, backed by significant investment in capital, intellectual property, and expertise.
Benchmark's genetics strategy is driven by innovation, focusing on continuous genetic improvement in growth and disease resistance. The nutrition division, INVE, provides specialized nutrition for early stages of shrimp and marine fish production. The health division addresses sea lice challenges in salmon farming with veterinary medicinal treatments.