Benchmark Holdings is to sell its genetics business to Starfish Bidco, a subsidiary of Copenhagen, Denmark-based Novo Holdings.
The deal, with an enterprise value of up to £260m, includes an initial payment of £230m and a potential £30m earn-out contingent on the performance of the salmon sub-segment between 2024 and 2027.
It is expected to close in Q1 2025, subject to shareholder approval and regulatory clearance.
Debt clearance
Benchmark outlined how the divestment of its genetics operations is part of a strategic review launched in January this year.
The sale is aimed at simplifying operations, cutting costs, and strengthening the company’s financial position.
“This agreement unlocks significant value for shareholders and allows us to concentrate on the substantial growth potential in our nutrition and health businesses,” noted Trond Williksen, CEO of Benchmark.
Benchmark Genetics
Benchmark Genetics, based in Bergen, Norway, generated £57m in revenue and £14.5m in Adjusted EBITDA over the 12 months to June 30, 2024.
It is a provider of salmonid genetics, offering eggs and genetic services to traditional and land-based farmers across Norway, Iceland, the Faroe Islands, Chile, and beyond. Its core offerings improve fish and shrimp farming efficiency by enhancing growth, feed conversion, and disease resistance.
Using advanced breeding programs and genomic tools to boost quality, yield, health, and animal welfare, Benchmark supports producers in over 50 countries. The company employs 270 people worldwide.
Focus on nutrition and health
Post-sale, Benchmark is to refocus its efforts on its nutrition and health segments.
Shrimp farming is key for its advanced nutrition business. While shrimp markets faced challenges in FY24, recovery is expected to boost performance.
Following a reorganization, Benchmark’s sea lice treatment solutions are now reportedly profitable and positioned for growth.
Novo expanding sustainable aquaculture portfolio
Novo Holding, a leading investor in the life sciences sector, said this deal is aligned with its strategic focus on aquaculture technology to drive growth, innovation, and sustainability.
Aleks Engel, partner at Novo Holdings, believes aquaculture genetics has immense potential to transform the global food industry, particularly in improving productivity, resilience, and environmental outcomes in the salmon sector.
In October, the Danish investors made another acquisition in the aquaculture space, agreeing to take a majority stake in Stingray Marine Solutions.
That company’s product, the Stingray system, uses a combination of camera vision, advanced proprietary software, and laser technology to remove sea lice from fish in a humane and efficient manner.
