Nutreco and Holmøy Group to make strategic investments in Andfjord Salmon

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As part of the deal, Andfjord Salmon has entered into an operational feed supply agreement with Nutreco’s aquaculture business line, Skretting.

Nutreco, a global leader in animal nutrition and aquafeed, and Norwegian seafood group Holmøy, have agreed to invest in land-based salmon farmer Andfjord Salmon, as part of a €3.8 million private placement.

Martin Rasmussen, CEO of Andfjord Salmon commented, “Nutreco is a highly reputable player in the aquaculture space, investing in the industry, with Skretting supplying world-leading feed and services to aquaculture producers all over the world. Holmøy is a highly respected Norwegian seafood group with strong local connection to Andfjord Salmon. We are delighted to enter into these agreements, which will bring on board two strategic investors to Andfjord Salmon and secure supply of our preferred feed.”

Nutreco, with over 12,000 employees in 37 different countries, is a global
player in the animal nutrition and aquafeed market. In Norway, Nutreco operates through its aquaculture business line, Skretting.

Erik Tveteraas, Investment Director at Nutreco says, “At Nutreco we are committed to our purpose of Feeding the Future. Our investment in Andfjord Salmon fully supports our ambitions to provide solutions to a dynamic and important sector that is essential to ensure that aquaculture continues to meet the seafood needs of our growing global population in a sustainable way.”

Holmøy is a seafood group based in Vesterålen, North Norway. It is one of
Norway’s largest players in the whitefish and salmon market. The group’s main activities are operation of trawlers through Prestfjord; ocean-based fish
farming through Eidsfjord Sjøfarm, which has an annual production of 20,000 tonnes Atlantic salmon; and Holmøy Fryseterminal, which offers cold storage of fish and other services. Holmøy group will invest in Andfjord Salmon through its fish farming company Eidsfjord Sjøfarm, which already owns 66,400 shares in Andfjord Salmon.

“Fish is our area of expertise, and we are dedicated to developing new
technologies and production methods. Investing in Andfjord Salmon is therefore a natural commitment to an industry we are passionate about and where both companies are strongly connected to Vesterålen and North-Norway. We also hope that this investment can stimulate discussions about further cooperation opportunities between the Holmøy group and Andfjord Salmon,” said Knut Roar Holmøy, CEO of the Holmøy group and member of Andfjord Salmon’s board of directors.

Nutreco will invest NOK 20 million (€2 million) in Andfjord Salmon, while Eidsfjord Sjøfarm will invest NOK 8 million (€0.8 million).

The investment
Under the agreement, Andfjord Salmon will issue, and Nutreco and Eidsfjord
Sjøfarm will, respectively, subscribe for 505,050 and 202,020 new shares in
Andfjord Salmon through a directed private placement. In addition, Andfjord
Salmon’s founder and board member Roy Bernt Pettersen will contribute a further NOK 10 million (€1 million) in new equity, by subscribing for 252,525 new shares in the private placement.

The subscription price per new share of NOK 39.60, is equal to the average
volume weighted price of the Andfjord Salmon shares in last the 60 trading days on Euronext Growth Oslo. In total, the private placement will raise gross
proceeds of NOK 38 million (€3.8 million). The proceeds are intended to be used partly for funding the company’s expansion plan and general corporate purposes.

Feed supply
In conjunction with investment, Andfjord Salmon has entered into a long-term, running strategic feed supply agreement with Skretting. The feed supply volume will be adapted on an ongoing basis to Andfjord Salmon’s production volumes of Atlantic salmon.

Under the agreement, Skretting commits to supply a feed that is specifically
tailored to Andfjord Salmon’s flow-through technology to ensure optimal water quality, fish welfare and growth conditions in the land-based pool. This will also ensure the production of a premium quality salmon.

Skretting’s experts will also participate in a technical advisory committee,
which will provide advice to Andfjord Salmon’s production protocols and
regularly evaluate production KPIs with the objective of further improving
conditions for the fish.

“Our aim is to have the world’s most fish-friendly and sustainable fish farming
facility of its kind. That is why we are entering into a long-term agreement
with a partner that is dedicated to the continuous development and evolution of fish feed ingredients and combinations, driving the sustainability transformation within raw materials for fish feed. This cooperation with Skretting will help to optimise fish welfare and growth conditions while keeping our environmental footprint as small as possible,” added Rasmussen.