"The investment in Benchmark Genetics provides us with increased exposure to the salmon industry, which benefits from highly attractive underlying dynamics," said Johan Hueffer, Senior Partner of Principal Investments at Novo Holdings.
Photo: Novo Holdings / Benchmark Genetics.
In January, leading aquaculture genetics, nutrition, and health company Benchmark Holdings opened the way to a potential sale. Yesterday we learned of the sale of its Genetics business to Danish investor Novo Holdings. The two companies have reached an agreement whereby the latter will acquire the former for an enterprise value of up to GBP 260 million (EUR 311.4 million / USD 327.3 million).
Novo Holdings is a holding and investment company that is responsible for managing the assets and the wealth of the Novo Nordisk Foundation, an enterprise foundation with philanthropic objectives with the vision of improving people's health and the sustainability of society and the planet.
The company said the transaction is aligned with its Planetary Health Investments team's strategic focus on aquaculture technology to drive growth, innovation, and sustainability, and added it complements the recent investment in sea lice laser firm Stingray Marine Solutions.
Based in Bergen, Norway, in its release on the acquisition Novo Holdings noted that Benchmark Genetics is 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.
The company has customers in more than 50 countries and employs 270 people worldwide. Its core genetic offering drives resource efficiency in fish and shrimp farming, addressing key production challenges such as growth rates, feed conversion, and disease resistance.
Aleks Engel, Partner of Planetary Health Investments at Novo Holdings expressed his satisfaction with the acquisition which, as mentioned, is aligned with the strategic focus of Novo Holdings Planetary Health Investments team.
"Both animal and plant genetics hold immense potential to transform the global food industry, enabling more efficient and sustainable ways to feed a growing population," he said. "In particular, advancements in aquaculture genetics, such as those in the salmon industry, present significant opportunities to improve productivity, resilience, and environmental outcomes."
Johan Hueffer, Senior Partner of Principal Investments at Novo Holdings, expressed in the same vein. "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," he stated.
Hueffer added that, by partnering with an experienced management team, they are confident in the company's ability to make significant advances in this field. "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 said.
An enthusiasm shared by the Director of Benchmark Genetics, Geir Olav Melingen. "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."
Benchmark Holdings CEO Trond Williksen, meanwhile, said he was pleased to have signed the agreement to sell the Genetics business to Novo Holdings. "Benchmark Genetics is a leading aquaculture genetics business with great potential and Novo Holdings is an excellent owner to take the business forward," he added.
As mentioned above, the acquisition agreement has fixed the sale at a total of GBP 260 million which is divided into an initial consideration of GBP 230 million (EUR 275.5 million / USD 289.5 million) and an additional contingent consideration of up to GBP 30 million (EUR 35.9 million / USD 37.7 million) based on certain revenue thresholds.
Completion of the transaction is expected to occur during the first quarter of 2025. Although still subject to obtaining customary regulatory approvals and shareholder approval, Novo Holdings said that shareholders representing approximately 71% of Benchmark's issued ordinary share capital have irrevocably agreed to vote in favor of the transaction.
