BioMar completes acquisition of Provimi Aqua

Move will make Alitec one of the strongest products offerings in the market for specialty products such as functional feeds, health products and medicated feed

February 7, 2008

BioMar completes acquisition of Provimi Aqua

BioMar has completed the acquisition of Provimi Aqua with factories in Chile, Denmark and Spain.

"We are pleased to have completed this acquisition", CEO of the BioMar Group Nils Agnar Brunborg said.

"By this acquisition we are delivering on our strategy “Going for Global Growth” where we set ourselves ambitious targets for growth. Strategically BioMar will become a much larger company almost equal in size to the worlds second biggest fish feed producer. The increased scale will make BioMar even more competitive in the future.”

“We will increase production at the Provimi Dana Feed factory in Horsens by selling more to the fast growing Norwegian market, and thereby at the same time reduce the overcapacity of the Continental European market," Brunborg continued.

"In effect we will bring much needed consolidation to the Continental European market. In Spain the ProAqua factory in Duenas will contribute to strengthening our position in the Mediterranean market area and bring BioMar closer to many important customers.”

“Provimi Aqua is very strong within niches such as feed for eel, emerging species like cod and larval and fry feed. These are areas that are complementary to the business of BioMar, thus the combined company will have a much stronger product offering for customers going forward.” said Brunborg.

"This is a perfect match," Carlos Diaz, VP of BioMar Americas said.

"For a long time we have admired the extremely strong product line that Provimi Alitec has within freshwater feeds. We will not only maintain Alitec as a brand, but we will accelerate development of innovations within freshwater feeds. Combined BioMar and Alitec will have one of the strongest products offerings in the market for specialty products such as functional feeds, health products and medicated feeds.”

“The acquisition includes a 50% ownership stake in a joint venture with AquaChile", Diaz continued. "The joint venture factory is located next to BioMar’s factory in Pargua providing the opportunity to achieve economics of scale, realize important synergies and access to additional capacity. Through the years we have had a very good commercial relationship with AquaChile, as well as other big farming companies, and we will through this partnership strengthen collaboration in different areas.”

"The acquisition doubles BioMar’s market share in Chile to reach a turnover in excess of 200 million USD and approx. 300 employees. This sends a strong signal that BioMar is a very serious supplier in this market. By completing this acquisition we emphasize that BioMar strongly believe in the growth potential of the Chilean aquaculture industry,” Diaz said.

“In addition Alitec has exports to Australia, New Zealand and USA which provides an interesting opportunity for further expansion, making BioMar an even more global player with presence in various markets and species.”

“In the coming years we will try to use the strong knowhow of Provimi Aqua employees on a more global scale. We believe for example that the larval and fry feed products of Alitec and Dana Feed have a global potential, that has not been fully utilised under the former ownership, said Brunborg”

The BioMar group is the third largest supplier of fish feed to the aquaculture industry. Their main business areas are feed for salmon, trout and Coho in Chile, Norway and the UK, and for freshwater trout, sea-bass and sea-bream in the rest of Europe.

The BioMar group supplies feed to around 50 countries and for over 25 different fish species, which in addition to the above include cod, eel, turbot, halibut, sturgeon, etc.

The BioMar group has modern production facilities in Chile, Norway, Scotland, Greece, France and Denmark. The group has a turnover of DKK 3.8 billion and has approx. 500 employees, which after the acquisition of Provimi Aqua is expected to increase to DKK 5.0 billion and approximately 800 employees.