Benchmark buys Columbian shrimp business
Genética Spring, a subsidiary of Benchmark, has bought Ceniacua’s shrimp breeding assets in a deal worth $2.17 million.
The deal sees Benchmark take over the breeding programme, related business, freehold land, buildings and assets of the Columbian firm, whose full name is Centro de Investigación de la Acuicultura de Colombia Ceniacua. Completion of the transaction is conditional upon certain legal formalities and is expected to occur before the end of August.
The acquisition adds a third species to Benchmark's salmon and tilapia aquaculture breeding business. The British company intends to utilise the global distribution channels within its Advanced Animal Nutrition division (INVE Aquaculture), which will provide routes to market for its shrimp genetics and offer opportunities for cross-selling.
The acquired business, headquartered in Punta Canoa, near Cartagena, operates breeding programmes for the species (L. vannamei) dominating the global shrimp sector, as well as for the marine finfish species cobia and grouper. The advanced shrimp selection programme has been particularly successful, and has bred populations with high level of resistance to certain of the major diseases affecting the shrimp industry worldwide. It is estimated that up to 40% of tropical shrimp production (>$3bn) is lost annually to disease, and according to the World Bank, production of farmed shrimp is expected to grow by 50-60% through to 2030.
An experienced team of world-renowned scientists will join Genética Spring as part of this transaction. The team have a long standing relationship with Benchmark's Breeding & Genetics division, and the breeding programme will continue to benefit from the advanced genetic selection services offered by Benchmark's aquaculture genetics technology business Akvaforsk Genetics Center (AFGC). This existing relationship will also ensure smooth integration of the business into the Benchmark Group.
Of the $2.17m total consideration approximately $1.33m relates to freehold land and buildings at Punta Canoa, and the balance to the breeding programme and other operational assets.
Commenting on the acquisition, Malcolm Pye, Chief Executive of Benchmark, said: "This important acquisition strengthens our unique package of products and services that are urgently needed in the aquaculture industry today. It adds the third major aquaculture species shrimp to our already strong aquaculture breeding business in salmon and tilapia, and increases our market penetration into the fast-growing shrimp industry. There is strong and growing customer demand globally for disease resilient shrimp, which are more robust and deliver better yields. This acquisition provides us with very high calibre broodstock to meet that need, offering a substantial commercial opportunity for the company and enhancing our growing reputation in aquaculture breeding and genetics."
