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Ewos acquires feed plant in Chile

EWOS Chile Alimentos Ltda, a wholly owned subsidiary of Cermaq ASA, has signed an agreement to acquire a feed plant from Cultivos Marinos Chiloé Ltda (CMC)

May 5, 2008


Ewos acquires feed plant in Chile

EWOS Chile Alimentos Ltda, a wholly owned subsidiary of Cermaq ASA, has signed an agreement to acquire a feed plant from Cultivos Marinos Chiloé Ltda (CMC). Concurrently, the parties have agreed a contract under which EWOS will supply 400,000 mt of fish feed to CMC over an estimated period of five years.

The acquisition of the plant is subject to certain conditions including the completion of a satisfactory due diligence process. However, an agreement to lease the plant for a period of 10 years is effective immediately, and this agreement will remain in force until the acquisition of the feed plant has been completed.

The consideration paid for the plant will be US$13.75 million.

Ancud is located in the north of Chiloé island, and is close to the main farming areas in the region. The Ancud plant has an annual capacity of 90-100,000 mt, and has been completely upgraded over the past 5 years. EWOS' existing feed plant in Coronel has an annual capacity of 450,000 mt, which may be increased by 30,000 mt following the integration of the Ancud plant. Through the transaction Cermaq has improved its strategic position in the Chilean feed market.

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