"This ensures strong local roots and helps preserve value creation, jobs, and expertise along the coast," Nicolaj Weiergang, Managing Director of ASG, said, commenting on the acquisition.
Photo: Arctic Seafood Group Facebook page.
Three locally owned aquaculture operators with established businesses in the Norwegian region of Helgeland—Sjybol, Kobbvåglaks and Selsøyvik Havbruk—have joined forces to buy 100% of the shares of Arctic Seafood Group (ASG). According to the company's statement on its LinkedIn page, the transaction, for which no financial details have been provided, will be completed this same month.
Arctic Seafood Group, whose activities are related to salmon production, owns 100% of the subsidiaries Organic Seafarm and AFC Analytics. Although it was previously involved in cod production, according to the release, that part of the business was spun off before the acquisition.
Thus, once the transaction is completed, the new owners will gain control of Organic Seafarm, which has a commercial maximum authorized biomass (MAB) of 1,856 tons for salmon production, three farming sites in Nordfjorden, Gildeskål, Nordland, its own operating organization, a land base, and an operations center in Nygårdsjøen, also in Gildeskål municipality.
Following the acquisition, Sjybol—known for being one of the owners of Lovundlaks—will become the company's main shareholder with a 49% stake, while Kobbvåglaks—which also has a stake in Kvarøy Smolt—and Selsøyvik Havbruk—which has a stake in Utror along with Lovundlaks, among others—will each own 25.5%.
Meanwhile, the sellers behind ASG are Friendmall—controlled by Polish entrepreneur Jerzy Malek, founder of Morpol, which, at the time of its sale to Marine Harvest (now Mowi) in 2012, was the world's largest processing facility, or Milarex, which was sold to the Swedish investment firm Summa Equity, which exited last October after eight years—; the Norway-based private investment company Hawk Seafood; and employees of the Arctic Seafood Group itself.
Dedicated to salmon farming since 2016, ASG has grown in recent years through the acquisition of licenses and the development of new farms. The release announcing the sale describes the company as "a well-managed salmon farmer in Production Area 8," referring to the Norwegian aquaculture production zone that covers the coastal area from Helgeland to Bodø and which, according to the latest traffic light system classification, currently has a yellow light.
The statement also highlighted that, in recent years, the company has managed to maintain high survival rates, high fish quality and a low feed conversion ratio, placing it on par with many of Norway's best-managed salmon producers, and noted that this was achieved thanks to solid local expertise, collaboration with other operators in the area and favorable natural environmental conditions.
The strengthening of local ownership—as mentioned, Sjybol, Kobbvåglaks, and Selsøyvik Havbruk are all locally owned aquaculture companies dedicated to salmon production in the Helgeland region, located, like Gildeskål, in the province of Nordland—has been the most emphasized aspect when assessing the acquisition by both the new owners and the current management team of Arctic Seafood Group.
"It is encouraging that, as small and medium-sized companies, we can work together to strengthen local ownership in the region, especially at a time when consolidation has become the norm in the industry," said Jørgen Aakre, Managing Director of Sjybol.
"We believe we will continue to be efficient and sustainable food producers well into the foreseeable future, while continuing to develop the local communities where we operate. To achieve this, predictable regulatory conditions from the authorities are particularly important," he added.
"We are very pleased with the group that will take responsibility for the company's continued development. This ensures strong local roots and helps preserve value creation, jobs, and expertise along the coast," stated, for his part, Nicolaj Weiergang, Managing Director of ASG.
"With highly skilled employees, a clear focus on profitable operations, and strong biological performance, we are well positioned to compete with the largest players in the market. We are convinced that this is a good solution for the company, our employees, and its future development," Weiergang concluded.
