Yes, we can: Bakkafrost buys tinning company Munkebo
Faroes and Scotland salmon farmer Bakkafrost has added tinned fish to its product range by buying Danish canner Munkebo Seafood AS.
Bakkafrost, which owns the Scottish Salmon Company, today announced that it has acquired a 90% stake in Munkebo Seafood from owner Paul Lybech, with the canning company’s general manager, Michael Karlsen, buying the other 10%.
Munkebo Seafood, based in the city of Munkebo, offers a wide range of products, the majoirty based on salmon. Bakkafrost said it has been one of the largest suppliers of raw materials for Munkebo Seafood for the past few years, making Munkebo Seafood a great extension of the salmon farmer’s value chain.
Value from by-products
“With a planned increase in production of salmon over the coming years, from Bakkafrost’s farms in the Faroe Islands and in Scotland, Munkebo Seafood will have a strengthened raw material base and Bakkafrost will strengthen the ability to further increase the value derived from its salmon by-products,” stated Bakkafrost.
Karlsen continues as general manager of Munkebo Seafood, and operations will remain unchanged. The company has around 40 employees, and the products are currently sold mainly within the European Union to retail customers. Munkebo Seafood had a gross contribution margin of DKK 18.5m (£2.01m) in 2020, with EBIT of DKK 4.8m. Bakkafrost said there is considerable spare production capacity for future growth within the current facility.
“With the acquisition of Munkebo Seafood, Bakkafrost can now offer a wider range of products,” said the salmon farmer. “Bakkafrost offers fresh, frozen and smoked salmon products, and now canned food is added. Bakkafrost has a global sales network, and Munkebo Seafood’s products will now be offered in a wider market as a supplement to Bakkafros’s other consumer packaged products.”
Prior to the acquisition of Munkebo Seafood, Bakkafrost had 1,644 full-time employees.