Cargill said on Monday that it had agreed to acquire EWOS, a supplier of feed for salmon and trout farms, from its private equity owners for 1.35 billion euros, or about $1.5 billion.
The deal would be the American food and agriculture giant’s first entry into the salmon market, making it a leading supplier to salmon farms as it expands its aquaculture business, Cargill said. It is Cargill’s second deal related to operations serving fish farms in recent months.
In July, Cargill announced a $30 million joint venture with Naturisa to build a shrimp feed facility in Ecuador.
The EWOS transaction “is a strategic investment in our long-term growth and evidence of our commitment to the growing aquaculture industry,” David W. MacLennan, the president and chief executive of Cargill, said in a news release.
The deal is subject to regulatory approval and is expected to close by the end of the year.
EWOS, which is based in Bergen, Norway, produces more than 1.2 million metric tons of fish feed a year and accounts for one-third of the world’s market for salmon and trout feed. Founded in Sweden in 1931, EWOS posted operating revenue of 11.6 billion Norwegian kroner, or about $1.4 billion, in 2014 and employed more than 1,000 people.
As part of the transaction, Cargill would acquire seven feed manufacturing facilities in Canada, Chile, Norway, Scotland and Vietnam, as well as two research and development centers.
Altor Equity Partners and Bain Capital acquired EWOS from the Norwegian fish farming group Cermaq in 2013 in a deal that valued the business at about 6.5 billion kroner.
Source: The New York TImes
Published: June 26, 2019