NRS merges with SalmoNor to form world’s sixth largest salmon producer

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Huge deal has come to fruition.

“NRS buys Salmonor. Then we merge the fish farming division in NTS and then buy NRS. An agreement has been reached today,” said main shareholder Helge Gåsø to SalmonBusiness.

“The company is based on a total production capacity of, over time, 100,000 tonnes in Norway. In the autumn of 2023, we are in full production. And 24,000 tonnes in Iceland. It is said, even though it is not so important to me, that it will be the world’s sixth largest producer,” Gåsø continued.

“It is an agreement that has been adopted and signed and approved by the boards of both NRS and NTS. We think this is important to reach an agreement that strengthens Namdalen, the coast in general and the company as a whole.”

“The agreement will be finalised in the second quarter,” he added.

€830 million
The Rørvik company NTS is a fully integrated aquaculture group with a significant position in salmon farming. Their fish farming company, SalmoNor, is valued in the agreement at about NOK 8.3 billion (€830 million). By merging SalmoNor and Norway Royal Salmon, the NTS Group will consolidate and strengthens its overall fish farming business. NTS currently has a 68 per cent ownership interest in NRS, and the production potential of the merged company is as much as 124,000 tonnes of salmon a year.

“With this, we secure the financial muscle to invest in the technology of the future and requirements for sustainability, withstand fluctuations in the market and secure local jobs. For me, it is especially important to emphasise that the merger secures the jobs we have created in Namdalen, Trøndelag and Northern Norway and paves the way for further growth in the future,” said Harry Bøe, CEO of NTS.

The NTS Group currently has 1,200 employees and expects to have a turnover of more than NOK 10 billion (€1 billion) in 2022. By merging the NTS-owned company SalmoNor with Norway Royal Salmon, the group’s salmon production is brought together in a joint company, as the ship business is concentrated in Frøy where NTS is the majority owner.

Strength
Helge Gåsø is chairman of the board of SalmoNor and NRS, and largest owner of NTS. He is very happy with the agreement.

“This makes us even better equipped to continue to deliver good results, both for the owners and for the coastal communities. The merger helps to strengthen the aquaculture industry, and enables us to double down on the areas we are already strong in today. We do this because we really believe in Coastal Norway,” said Gåsø.

NTS was established in Namdalen in 1867. From being a transport company, NTS has in a few years become one of the country’s most ambitious aquaculture groups. The agreement comes as a result of strategic talks that began in September last year. The merger helps to realize the company’s strategic ambitions.

Develop
CEO Klaus Hatlebrekke of Norway Royal Salmon is pleased that the agreement has now been signed.

“We are enthusiastic about a merger with SalmoNor. We are impressed with the operational expertise that lies in the company and look forward to working together to develop the joint company in the future,” said Hatlebrekke.

The merger strengthens NTS ‘position as a leading listed aquaculture group. Helge Gåsø, emphasized that the company will continue to have its head office in Rørvik and maintain its strong regional roots.

“We believe this will be very important for further growth and development in Namdalen, Trøndelag and not least in northern Norway where NRS has its operations today. It is important for both us and Coastal Norway that large Norwegian ownership environments have a strong local anchorage and this merger strengthens local ownership in Namdal, Trøndelag and Coastal Norway,” said Helge Gåsø.