Akvaforsk Genetics Center sold
According to its web site, “Akvaforsk Genetics Center (AFGC) has extensive experience in design, implementation and routine technical operation from more than 25 applied selective breeding programs for fish and crustaceans species in Europe, Asia and Latin America. These programs cover the majority of the commercially important farmed aquaculture species, including salmonids, tilapias, marine fish and shrimp. AFGC also routinely conducts external reviews of third party broodstock management and breeding program operations”.
“Reflecting the company’s track record and the competence of its highly skilled and dedicated technical staff, AFGC is proudly serving industry leaders ranked among the world’s largest players in their respective fields of operation. Among these are SalmoBreed AS (Norway), Nireus S.A. (Greece), Stolt Sea Farm S.A. (Spain), Hainan Progift Aqua-Tech Co. Ltd. (China), Manit Farm Ltd. (Thailand), Spring Genetics (USA/Latin America) and Marine Harvest ASA (European operations)”.
The surprising news likely came out of the blue for most observers and industry insiders. Some details of the transaction were provided by ShareCast News this morning:
Benchmark Holdings surged 10% after saying it had acquired Norwegian aquaculture genetics and research business Akvaforsk Genetics Center AS (AFGC) and 80% of the issued share capital of US-based Spring Genetics for a combined total consideration of NOK140m (~€ 15.5 million) . The acquisitions, which will be made from existing cash balances, represent a strategic move into aquaculture genetics across a wider number of the major farmed species, and into breeding in the fast growing tilapia sector, the company said.
Benchmark said they are expected to be earnings-accretive in the year ending 30 September 2016, and will enhance the group's position as a leader in the aquaculture genetics space, with new customers across new geographies and species. In addition, the acquisitions will create multiple opportunities for immediate synergies, the company said.
AFGC is a provider of technical genetic services, with long-term customer contracts across many aquaculture species in Norway, Canada, Thailand, China and the USA.
Spring Genetics, which is based in Miami and Mazatlan, Mexico, is one of only a handful of independent tilapia primary breeding companies. It is predominately focussed on the USA and Latin America. Chief executive Malcolm Pye said: "The acquisitions of AFGC and Spring Genetics give Benchmark access to new geographies and customers in emerging markets, diversify our offering and fulfil Benchmark's strategic objective of offering our expertise across a range of species within the aquaculture arena. "The entrance of the company into the tilapia market is particularly encouraging, as it is one of the fastest growing sources of protein in the Latin American region."
