The Scottish Salmon Company Plc (SSC), a leading salmon farming company with operational headquarters in Edinburgh, Scotland, has completed its strategic review resulting in P/F Bakkafrost (Bakkafrost), the aquaculture farming company based in the Faroe Islands, buying a 68.6% stake in SSC from Private equity firm, Northern Link, at NOK 28.25 per share. The successful acquisition of the 68.6% majority stake will trigger a Mandatory Tender Offer for the remaining 31.4% free float in SSC, resulting in SSC being wholly acquired by Bakkafrost for a total consideration of £ 517 million (approx. NOK 5.47 billion).
The Transaction and any subsequent Mandatory Tender Offer will be funded via a mix of debt and equity, including an accelerated bookbuild offering of approx. 15% of share capital and a directed share issuance of approximately 5% of share capital to Northern Link Ltd.
The Scottish Salmon Company’s operations are on the West Coast of Scotland and the Hebrides with a clear vision and ambition to "Bringing Scotland's finest salmon to the World." SSC has exclusive genetics to Native Hebridean Salmon which is stronger, leaner and noticeable firmer compared to Atlantic salmon. SSC had a harvest of 29,913 tonnes in 2018, an 18,463 tonnes harvest in H1-2019 and has total harvest capacity of 50,000 tonnes. The company generated an EBITDA of £56.7m in 2018 and £35.7m in H1-2019.
Regin Jacobsen, CEO of Bakkafrost since 1989, says "Bakkafrost's journey has been characterised by delivering industry leading growth and profitability combined with a focus on shareholder value creation. The Scottish Salmon Company represents an attractive acquisition at this juncture providing exposure to the attractive and premium Scottish salmon farming region with potential for synergies and transfer of best practices. The entire Bakkafrost team is looking forward to working with the SSC management team to continue to enhance performance of the business and drive value in the years ahead."
Craig Anderson, CEO of SSC, said: "The Board of SSC considers this offer to be in the best interest of all shareholders as it realises the material value that has been created after nine successive quarters of growth. The Board initiated the independent Strategic Review in order to assess options to realise value and deliver future growth from the business. The Review has been successful in terms of the volume and quality of the companies that have participated in the process, and has resulted in this acquisition to create a major global salmon farming business.
Aabø-Evensen & Co has acted as legal advisors to the Scottish Salmon Company Plc.