Following the closing of the transaction, the company now owns 100% of its land-based breeding facility in Salten, Norway.
Photo: Benchmark Genetics.
The road that opened in January 2024 when leading genetics, nutrition and aquaculture health company Benchmark Holdings said it was "considering its strategic options," including a full or partial sale, ended this week when it announced that the sale of the company's genetics business area had been completed. Thus, as of this Monday, March 31, Benchmark Genetics is an independent company within Novo Holdings' investment portfolio.
As announced in November, when we learned of the transaction, the life sciences investment company - the holding company of Danish pharmaceutical multinational Novo Nordisk - closed the deal for a total of GBP 260 million (EUR 311.2 million / USD 336 million), comprising an initial consideration of GBP 230 million (EUR 275.3 million / USD 297.3 million) and a contingent consideration of up to GBP 30 million (EUR 35.9 million / USD 38.7 million).
In this week's stock exchange announcement, Benchmark Holdings added that, after accounting adjustments following completion of the sale, the transaction is expected to generate gross cash proceeds of approximately GBP 194 million (EUR 232.2 million / USD 250.8 million), excluding any Earn-out Consideration. After payment of the Group's unsecured floating rate listed green bond and associated costs, the net cash proceeds will be approximately GBP 107.5 million (EUR 128.7 million / USD 138.9 million).
The closing of the transaction marks the beginning of a new era for Benchmark Genetics, which, it said in a statement, "marks the beginning of a new era that promises growth, innovation, and an even stronger commitment to delivering cutting-edge genetic solutions for aquaculture."
Converted, as said, into an independent, privately held company headquartered in Bergen, Norway, it will continue to operate under the Benchmark Genetics brand and will continue to offer its product portfolio and, it said in a statement, accelerate its efforts to develop high-performance, sustainable genetics for salmon, shrimp and other aquaculture species.
A leader in salmonid genetics, providing eggs and other genetic services to both traditional and land-based fish farmers, operating in Norway, Iceland, Faroe Islands, Chile, and other major regions, Benchmark Genetics said that in this new phase under the ownership of Novo Holdings, it will focus on six main points:
Enhancing its existing genetic improvement programs to optimize production performance and sustainability.
Expanding into new markets and species, leveraging its expertise and leading technology to boost seafood production worldwide.
Investing in production and genetic cores to ensure a biosecure and reliable supply to its customers.
Expanding its offering of genetic and genotyping services to maximize the benefits of genetic improvements for producers around the world.
Strengthening partnerships with industry leaders, research institutions, and producers.
Driving innovation in genomics, genotyping, and reproductive biotechnology.
Benchmark Genetics, which called this change of ownership "a major milestone" in its journey, added that one of the highlights of this transition is that the company now wholly owns its land-based breeding center in Salten, Norway. "This move will further strengthen the operational capabilities and continue to secure a year-round supply of high-quality eggs for our customers," it noted.
Likewise, it pointed out that the new owner is a leading global life science investor with a strong track record of supporting sustainable food production. "Their backing provides long-term financial stability, allowing us to continue investing in solutions that benefit aquaculture producers worldwide," the aquaculture genetics specialist said.
"At Benchmark Genetics, we believe in the power of genetics to transform aquaculture. With the support of Novo Holdings, we are more determined than ever to bring value to our customers and contribute to a sustainable aquaculture industry," the company concluded.
Novo Holdings, which has not commented now, on the closing of the deal, said in November that this acquisition was aligned with the Novo Holdings Planetary Health Investments team's strategic focus as both animal and plant genetics have immense potential to transform the global food industry, enabling more efficient and sustainable ways to feed a growing population.
"The investment in Benchmark Genetics provides us with increased exposure to the salmon industry, which benefits from highly attractive underlying dynamics. Further, it represents an opportunity to support a leading animal genetics platform with global ambitions," Johan Hueffer, Senior Partner of Principal Investments at Novo Holdings said then.
"At Novo Holdings, we are excited to leverage our industry experience and extensive network to help realise the company's full potential and contribute to sustainable growth in the aquaculture sector," he added.
Finally, coinciding with this change of ownership, yesterday, April 1, the hitherto Director of Benchmark Genetics, Geir Olav Melingen, shared on his LinkedIn profile that he was starting a new position as CEO at the company. Although he did not add any comments now, back in November, he had already shown his enthusiasm with the change.
"I am very excited about the future of our business. We have a great opportunity ahead and look forward to continuing our journey with Novo Holdings bringing solutions to the aquaculture industry to improve productivity, resilience and sustainability," he stated then.
