Mowi CEO on K. Strømmen Lakseoppdrett acquisition: “The price is, of course, high”

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According to Mowi CEO Alf-Helge Aarskog, Nordfjord, Western Norway, is a very important area for the world’s largest salmon farmer. It is also the main reason why the company bought K. Strømmen Lakseoppdrett.

On Friday, Mowi confirmed that they were buying K. Strømmen Lakseoppdrett for EUR 82 million.

“The price is, of course, high but still significantly below what Mowi is priced at, so “accretive” for our shareholders,” wrote Mowi CEO, Alf-Helge Aarskog in an e-mail to SalmonBusiness on Friday morning.

How are you going to get a decent return on invested capital here?

“Through improved operations and synergies with own operations in the area,” Aarskog responded.

Last year, K. Strømmen Lakseoppdrett had an operating loss of EUR 665,000.

The family-run salmon farmer was put for sale at the beginning of June. It was SalmonBusiness who first reported this.

Aarskog didn’t want to say who was in the competition for K. Strømmen Lakseoppdrett. He also didn’t go into how long the negotiations have been going on for, or when the deal was ready.

What is the main reason why you bought K. Strømmen Lakseoppdrett?

“Nordfjord is a very important area for Mowi. It is important in terms of area control in view of improved fish health. It is also important for Mowi and to maintain our growth, the world wants more Mowi salmon, and we want to deliver,” added Aarskog further.

What is the way forward for K. Strømmen Lakseoppdrett?

“First, the transaction must be approved by the Competition Authority, then further strategy will be added,” Aarskog concluded.