Norwegian seafood company Nordic Halibut has entered into a share purchase agreement with fish processing specialist Pure Norwegian Seafood (PNS) for the acquisition of 100 per cent of the shares in PNS.
PNS owns a processing facility based in Averøy, Møre og Romsdal. Nordic Halibut said the processing plant has a highly flexible production line that is adaptable to processing multiple species, with capacities for sanitary slaughtering as well as significant freezing capabilities.
Nordic Halibut currently has a commercial relationship with PNS under a customer agreement, and the acquisition will provide Nordic Halibut with full control over the processing facility and related operations.
Nordic Halibut said the acquisition of PNS represents the final step towards achieving full control over the company's entire value chain – from genetics to harvesting, processing and production. Access to PNS' processing facility is a factor in Nordic Halibut's planned scale-up of production volumes, targeting an annual production of 10,350 tonnes HOG by 2031.
The consideration payable by Nordic Halibut for the acquisition is based on an enterprise value of PNS of around NOK60 million (US$6.1 milliion), adjusted to an equity value through customary adjustments. The purchase price will be settled in cash at completion and is expected to be financed through a new bank facility.