FDBusiness.com

Bakkafrost, the leading producer of top quality salmon from the Faroe Islands, has agreed to acquire 68.6% of The Scottish Salmon Company from Northern Link. The successful acquisition of the 68.6% majority stake will trigger a mandatory tender offer for the remaining 31.4% free float. The agreed acquisition price of NOK28.25 per share implies an enterprise value for The Scottish Salmon Company of £517 million.

The Scottish Salmon Company is a leading salmon farming company with operational headquarters in Edinburgh, Scotland. The 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’. The Scottish Salmon Company 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 £56.7 million in 2018 and £35.7 million in the first half of 2019.

Regin Jacobsen, chief executive of Bakkafrost since 1989, comments: “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.”