Benchmark, the Sheffield-based aquaculture biotechnology company, has agreed to sell its genetics division to Novo Holdings, the largest shareholder in Danish pharmaceutical heavyweight Novo Nordisk, for a value of up to £260 million.
The transaction includes an initial payment of £230 million, with an additional contingent consideration of up to £30 million. The deal encompasses Benchmark Genetics Ltd, Benchmark Genetics Norway AS, and their subsidiaries.
In October Novo Holdings announced the acquisition of a majority stake in lice-zapping robot builder Stingray Marine Solutions.
For the 12 months ending June 30, 2024, Benchmark’s genetics business generated £57 million in revenue and adjusted EBITDA of £14.5 million. As of the same date, the division’s net assets were valued at £52.8 million.
Benchmark CEO Trond Williksen said the sale would allow the company to return capital to shareholders and focus on its remaining business segments, Advanced Nutrition and Health. “The transaction will unlock significant value, reduce complexity, and streamline the group structure to significantly reduce costs,” Williksen stated.
Novo Holdings, the investment arm of the Novo Nordisk Foundation, expressed optimism about the acquisition. Aleks Engel, a partner at Novo Holdings, highlighted the transformative potential of advancements in aquaculture genetics for the global food industry. “This acquisition aligns with our commitment to investing in sustainable solutions that improve productivity and environmental outcomes,” Engel said.
Novo Holdings manages assets of €149 billion (£124 billion) and invests across various stages of life sciences companies. The transaction is expected to close in the first quarter of 2025, subject to shareholder approval and regulatory clearances.
Benchmark also announced it will release its full-year results for the period ending September 30, 2024, on December 12.
