Bakkafrost acquires the Scottish Salmon Company

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Faroese fish farming giant Bakkafrost has acquired 68.6% of the Scottish Salmon Company, it’s been announced.

The move means the other 31.4 per cent will now go out to a mandatory tending offer. It has been sold by investment company North Link.

The price for the shares is €2.85, which puts an enterprise value at €585 million.

Regin Jacobsen, CEO of Bakkafrost, said: “Bakkafrost’s journey has been characterised by delivering industry leading growth and profitability combined with a focus on shareholder value creation.”

“The Scottish Salmon Company represents an attractive acquisition at this juncture providing exposure to the attractive and premium Scottish salmon farming region with potential for synergies and transfer of best practices.”

This is the first time that Bakkafrost will establish operations outside the Faroe Islands.

The acquisition will be financed by a mix of debt and equity, according to an announcement on the Oslo Stock Exchange.

An issue of 7.3 million shares – equalling 15 per cent of the company’s outstanding shares – has also been made.

Goldman Sachs, Nordea and DNB are in charge of the process.

The SSC is headquartered in Edinburgh, but operates mostly off the west coast of Scotland. The company harvested 29,913 tonnes of salmon last year and has a total production capacity of 50,000 tonnes.

Mr Jacobsen added: “The entire Bakkafrost team is looking forward to working with the SSC management team to continue to enhance performance of the business and drive value in the years ahead.”