Austevoll Seafood to buy 50% of shares in Hordafor AS

Austevoll Seafood’s (OSE: AUSS) fishmeal- and oil subsidiary Welcon Invest AS has entered into an agreement for acquistion of half of the total shares in Hordafor AS subject to customary conditions. The acquisition is considered as strategically important for Welcon and thus Austevoll notified the stock exchange on Friday.

Hordafor AS was established in 1983 and produces protein concentrate and marine oils from by-products of fish breeding, abattoirs (slaughterhouses) and other pelagic fish and salmon industry operations. Hordafor has three plants along the Norwegian coast (Salthella, Aversøy and Brettesnes) and transports the by-products from the plants into Austevoll for further processing into protein supplement H-Pro® and salmon oil H-Oil®. The company posseses three tankers used in ensilage and shipment.

The primary uses for the final products are as input ingredients in feed products for the aquaculture and agrosector in dry fodder and in wet mash as well as in industrial uses for production of butter and margarine and for technical use as a component in tyres, candles, paper chemicals and textile production aids. The volume of by-products utilized in production is around 175,000 tonnes.

Hordafor Group’s 2010 turnover was 520 million (400, 240 and 220 million in the previous years, showing solid growth) and the operating result was 81,4 million. The balance sheet value is 320 million NOK. Austevoll Seafood should have been able to draw on the experience of directors from other associated companies and connections in due diligence, ie. from Sigurd Teige who is Chairman in Norway Pelagic ASA and Hordafor. The deal is made in cash and Austevoll is paying 120 million NOK for the shares. Austevoll Seafood gained 1.5% on Friday.