Mowi acquires Nova Sea for NOK 7.4 billion
Mowi has entered into an agreement with Vigner Olaisen AS to purchase its shares in Nova Sea AS. This will increase Mowi's ownership in the company from 49% to 95%.
Mowi, which is already the world's biggest salmon farmer, will then make a voluntary offer to the remaining shareholders, the company stated in a press release today.
Nova Sea is engaged in salmon farming in production area 8 in Northern Norway and covers the entire value chain from broodstock and smolt production to harvest and sales. The company expects to harvest 52,000 tonnes of salmon in 2025.
Mowi has been a major minority shareholder in Nova Sea since 1995 and knows the company well. Mowi chief executive Ivan Vindheim said in the press release that he is impressed with what the company and the owners have achieved.
"Nova Sea is a pioneering company in the Norwegian aquaculture industry and is known for its strong biological performance and industry-leading margins. The company and the Olaisen family have invested in and further developed the business over 50 years to become an impressive, fully integrated company. It is therefore with great pleasure that we now, after 30 years, join forces," said Vindheim.
572,000 tonne harvest
Mowi currently has a significant operation in Northern Norway and, together with Nova Sea, is expected to have a harvest volume of 157,000 tonnes of salmon in this region in 2025. Mowi now expects to harvest 367,000 tonnes in total in Norway and 572,000 tonnes worldwide (including Norway).
"The merger with Nova Sea will strengthen Mowi as a global and national powerhouse for innovation and sustainability by developing and utilising new technology and knowledge to promote good fish welfare," said Vindheim.
Aino Olaisen, chair of the board at Nova Sea, said she knows Mowi as a leading company in the aquaculture industry when it comes to both operations, innovation, and not least sustainability, including fish welfare.
"This will be a very good solution for the company, the organisation, and the entire region," said Olaisen.
Synergies and economies of scale
Vindheim believes that Mowi and Nova Sea are a very good fit, and the merger is expected to result in significant synergies, including improved capacity utilisation and site portfolio in Region North. The preliminary estimate of synergy value amounts to NOK 400 million annually.
"With this, we strengthen our presence in one of the world's best areas for farming Atlantic salmon. In addition, the merger will improve our biological performance and biosecurity in this region," said Vindheim.
Aino Olaisen looks forward to the merger and believes it will create further sustainable growth in Northern Norway.
"Value creation and community building along the coast, especially in Northern Norway, are very important to us. I am confident that this will create even more value and more jobs in Nordland over time," she said.
Northern Norway has long been central to Mowi's growth strategy, and it is no coincidence that the company is now growing significantly here.
"This is a strategically important transaction for Mowi that will be a catalyst for sustainable growth in Northern Norway. We will continue to grow through the value chain and will focus even more on Northern Norway in the future, creating more jobs and increasing activity," the Mowi CEO said.
£526m price tag
Mowi is buying Vigner Olaisen's shares in Nova Sea for NOK 7.4 billion (approximately £525.8 million or €628.6m) through 30% settlement in Mowi shares and 70% in cash. The transaction values the equity in Nova Sea at NOK 16bn.
Mowi will make a voluntary cash offer on similar terms to the shareholders who own the remaining 5% of Nova Sea.
The transaction is subject to competition approval, and Mowi expects it to be completed sometime during the second half of 2025.
