Endúr has announced an agreement to acquire 100 percent of the shares in VAQ AS, a leading supplier of recirculating aquaculture system (RAS) technology, from majority owner Broodstock Capital and several employee minority shareholders.
The transaction is expected to significantly enhance Endúr’s capabilities within the land-based aquaculture sector, which is poised for substantial growth in the coming years.
Strategic Fit
“VAQ represents a strong operational fit for Endúr and our subsidiary Artec Aqua. Integrating the RAS capabilities of VAQ allows Endúr to strengthen its market presence within land-based farming, by offering a complete suite of relevant technologies,” said Jeppe Raaholt, CEO of Endúr.
The acquisition will allow Endúr to expand its technology portfolio, leveraging VAQ’s expertise in smolt and post-smolt farming systems to complement the existing Artec Aqua Hybrid System. The deal also provides Endúr with an additional 50 skilled engineers, which will help reduce reliance on external resources and boost in-house project capabilities.
Growth Prospects
VAQ is expected to generate approximately NOK 400 million ($35.2 million/€33.6 million) in revenue for FY 2024, up from NOK 332 million ($29.2 million/€27.9 million) in 2023. Its operating result for 2024 is projected to be between NOK 5 million ($0.44 million/€0.42 million) and NOK 10 million ($0.88 million/€0.84 million).
“Through its well-executed design and construction for Salmon Evolution, Endúr stands out as a preferred buyer. The amount of consideration shares reflects our strong belief in the future of both Endúr and VAQ, individually and together,” said Pål Kristian Moe, Chairman of the Board of VAQ.
Terms of the Transaction
The acquisition values VAQ at an equity value of NOK 115 million ($10.12 million/€9.66 million), based on an enterprise value of approximately NOK 95 million ($8.36 million/€7.98 million). An additional locked box compensation of NOK 2.5 million ($0.22 million/€0.21 million) will also be paid.
The purchase is financed through a 50-50 split between cash and consideration shares. Lock-up periods range from 6 to 24 months, depending on the seller.
Following the acquisition, VAQ will continue to operate as a separate legal entity under Endúr’s Aquaculture Solutions segment.
Timeline and Approvals
The transaction, expected to close by February 2025, is subject to regulatory approval from the Norwegian Competition Authority and other customary conditions.
SEB Corporate Finance acted as the exclusive financial advisor to Endúr ASA.
Endúr, headquartered in Lysaker, Norway, provides construction and maintenance services for marine infrastructure, including facilities for aquaculture, harbours, and bridges. The company’s Aquaculture Solutions segment supports the rapidly evolving fish-farming industry with sustainable technologies.
