Nova Sea is based in Lovund, Lurøy Municipality in Nordland county, Norway.
Photo: NovaSea / Mowi.
Mowi has announced this morning that it has signed a deal to become the majority owner of salmon farming company Nova Sea, acquiring 95% of the company.
Mowi CEO Ivan Vindheim confirmed that Mowi will pay NOK 7.4 billion (EUR 625 million) for the transaction, buying out majority owner Vigner Olaisen's 46% stake through a settlement of 30% in Mowi shares and 70% in cash.
This stake could increase to 100%, since Mowi indicated it will also make a voluntary cash offer on similar terms to Nova Sea shareholders owning the remaining 5%, for NOK 0.8 billion.
Mowi was already one of Nova Sea's main minority owners since 1995, owning 49% of the company prior to today's agreement.
"Nova Sea is a frontrunner in the Norwegian aquaculture industry and is known for its excellent biological performance and industry-leading margins," Mowi CEO Ivan Vindheim said in a stock exchange announcement.
"Over 50 years, the company and the Olaisen family have invested in the organisation and developed it into an impressive, fully integrated operation. It is therefore with great pleasure that we are now, after 30 years, combining our operations," he added.
Nova Sea is one of Northern Norway's leading salmon farming companies. The company covers the whole value chain from broodstock and smolt production to harvesting and sales, with a harvest guidance of 52,000 tonnes for 2025.
With the acquisition of Nova Sea, Mowi says its expected 2025 harvest volume for its operations in northern Norway will increase to 157,000 tonnes, and 367,000 tonnes in total for Norway.
The deal values Nova Sea’s entire equity at NOK 16.0 billion (EUR 1.36 billion / USD 1.42 billion), taking into account a net interest-bearing debt of NOK 0.5 billion at the end of 2024.
The company stated it expected the aquisition to "yield significant synergies, including improved capacity utilisation by leveraging the location portfolio in Region North and by further strengthening biological performance through investments aimed at improving fish health".
It estimated this will translate to a value of approximately NOK 400 million (EUR 34m / USD 35.4m) each year.
Mowi said it intends to propose Nova Sea’s Chair, Aino Olaisen, as a new board member.
"Nova Sea and Mowi are a very good match and this combination will benefit the company, fish welfare and the whole organisation. Value creation and community building along the coast, and especially in Northern Norway, is very important to us. I believe this will create more value and more jobs in Nordland over time," Olaisen said.
The transaction is subject to competition approval, including from the European Commission, in addition to certain other standard closing conditions. Mowi expects the transaction to be closed in the second half of 2025.
