Two Norwegian salmon farms up for sale

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Norway Royal Salmon’s southern operations and K. Strømmen Lakseoppdrett are being prepped for the sale process.

SalmonBusiness reports that Norway Royal Salmon’s operations in the south are being considered to be sold. CEO Charles Høstlund said that the company had not managed to exploit the potential that lay in the region after it posted a disappointing Q2 result in May.

“It is a process that has started now, and where sales are an alternative. I can confirm that there is a discussion with several players about a possible sale,” said DNB Markets’s head of seafood Per Even Hauge to SalmonBusiness.

“I do not want to say how many players there are, but it is players who have strategic interests in this region,” he continued.

How much?
Hauge does not want to speculate as much about what the business may be sold for. Nor did NRS’s CFO (and press contact) Ola Loe. “We have barely started with the process, which started after the quarterly presentation. We are at the very beginning,” said Loe.

PHOTO: K. Strømmen Lakseoppdrett

Furthermore, K. Strømmen Lakseoppdrett in Western Norway is also believed to be mulling a sale. The family-run business, founded by fish farming pioneer Kristen Strømmen in 1972, has four food fish licenses and operations in four locations and produces around 5,500 tonnes of salmon annually.

In 2017, K. Strømmen Lakseoppdrett sold EUR 24 million worth of fish. Operating profit ended at EUR 3 million.

Will neither deny nor confirm
SalmonBusiness contacted Kurt André Strømmen, one of three main owners of the company. The other two are Sven Jørgen Strømmen and Andreas Strømmen.

“I will neither deny nor confirm anything. I simply do not want to comment on this. There are some rumours,” said Kurt André Strømmen to SalmonBusiness.

No comment
SalmonBusiness has learnt that Pareto Securities has been chosen as a facilitator for the transaction.

Henning Lund, who works in the corporate finance department of Pareto, told SalmonBusiness that he will neither deny nor confirm whether a sale is in progress and added that he will not comment on behalf of any client at this time.