Aker BioMarine has signed an agreement with American Industrial Partners (AIP) and Aker Capital (Aker) to sell its Feed Ingredients business for an enterprise value of around NOK6.3bn ($590m).
Under the terms of the agreement, the Norwegian fishing and biotech company will divest its business to a newly formed company.
The new company, dubbed Aker BioMarine Antarctic Holding II, will be 60% owned by AIP and 40% by Aker.
The transaction is expected to be completed during the third quarter of 2024, subject to obtaining the necessary competition clearances.
Earlier this year, Aker BioMarine launched a strategic review of its ownership position in the Feed Ingredients business.
The transaction will strengthen its value, create significant shareholder value, and help focus on the human health and nutrition business, said the biotech company.
Aker BioMarine CEO Matts Johansen said: “We are pleased to announce the sale of our ownership position in the Feed Ingredients business.
“This transaction is the result of a process that attracted interest from a wide range of reputable parties and not only demonstrates the value of Feed Ingredients but also underscores the value potential of Aker BioMarine as a whole.
“We will continue to explore how we can drive shareholder value by enabling potential partnerships and transactions for each of the remaining business units.”
Aker BioMarine intends to use the proceeds to refinance its debt to leverage its remaining business and plans to distribute dividends between NOK35 and NOK45 per share.
The company will focus on human health and nutrition through its three business units – Human Health Ingredients, Consumer Health Ingredients and Emerging Businesses.
The biotech company has signed a long-term contract with Feed Ingredients for the supply of krill raw materials for its Human Health Ingredients business.
Arctic, Carnegie and Rabobank served as financial advisors, and Schjødt as legal advisers to Aker BioMarine on this transaction.
