Akva to expand on land

The takeover was first mentioned by Akva back in July and the company announced this morning that it has now entered into an agreement with Fokus Invest ApS, J&O Holding, Randbøl ApS and RM Invest ApS for the purchase of all of the shares in Aquatec.

Fokus Invest ApS is controlled by Aquatec chairman Anker Stensig Andersen. J&O Holding, Randbøl ApS is controlled by Aquatec co-founder Ole Enggaard Pedersen. RM Invest ApS is controlled by Aquatec CEO Morten Nielsen.

The purchase price will be paid in cash on completion of the transaction, which is expected to take place on 30 September 2015. In addition AKVA will pay an adjustment amount based on the net debt and working capital position of Aquatec as of the closing date. Finally, Akva will pay to the sellers an additional consideration (earn-out) based on the realized EBITDA of Aquatec for 2015 and 2016. The parties have agreed an estimated net present value of the earn out in the amount of DKK 21.6 million, based on current budgets and forecasts.

Akva will finance the transaction with a loan from Danske Bank.

Significance

"We are pleased to welcome Aquatec in to Akva. Aquatec Solutions has a good reputation and a strong presence especially in the salmon farming regions in the world and will supplement our existing land-based set-up in a very good way," states Trond Williksen, CEO of Akva group.

The transaction significantly strengthens Akva's positioning towards a land-based technology segment, which expected to grow in the years to come.

Aquatec Solutions

Aquatec operates world-wide in supplying land-based fish farming technology and solutions for both salt and fresh water fish. Aquatec's offering covers everything from complete fish farming systems to high quality fish farming equipment and components. For facilities in operation Aquatec provides supervision and support.

The board of directors of Aquatec consists of Anker Stensig Andersen, Erik Nielsen and Ole Enggaard Pedersen. The general manager of Aquatec is Morten Nielsen, while the Chilean operations are led by Mauricio Leal.  Aquatec has 25 full time employees in Denmark, with a further 19 engaged in the activities of the group in Chile. Akva group have not entered into any agreements for the benefit of management or key personnel in Akva in connection with the transaction. The selling shareholders and their controlling owners have entered into customary non-compete and non-solicitation undertakings in connection with the transaction. No other agreements have been entered into with the management and key personnel in Aquatec.