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Cermaq completes sale of EWOS

Published on 1 November, 2013, Last updated at 13:57 GMT
Cermaq completes sale of EWOS

EWOS, a leading supplier of feed and nutrition for the international aquaculture industry,
has completed it sale from Cermaq to Altor Fund III and Bain Capital on Thursday for an enterprise value of NOK 6.5bn.

Cermaq has entered into a definitive share purchase agreement in September for the sale of EWOS to Altor Fund III GP Limited and Bain Capital Europe, LLP (collectively referred to as "Altor and Bain Capital"). The purchaser will be a Norwegian company established by funds advised by Altor and Bain Capital for this purpose.

The transaction is structured as a sale and purchase of shares in certain Cermaq subsidiaries and certain assets and liabilities thereof.

Altor and Bain Capital have followed the aquaculture industry for several years, and see great potential in working with EWOS' management team to further develop its world leading fish feed business.

As part of the transaction, Mainstream will enter into a long term feed agreement with EWOS on market terms. The six year contract includes exclusive deliveries from EWOS the first two years of the contract.

"EWOS has a strong global market position and our key strength is our considerable knowledge of nutrition, production and logistics, especially through our R&D company EWOS Innovation. We are set to use this strong platform for further growth", says CEO Einar Wathne of EWOS.

As an independent company, EWOS will be seeking to recruit new employees to fill various functions at a group level. A new board of directors has also been appointed with representatives of both Altor and Bain Capital.

"Feed production is becoming more and more advanced. Restricted access to raw materials, new regulatory demands and continued need for a healthy fish will require a knowledge-based feed industry," states Wathne. "EWOS is uniquely poised to lead this shift."

Altor and Bain Capital have long followed the salmon aquaculture sector and are excited to back EWOS in its next stage of growth.

"With a leading market position in the world's biggest salmon farming regions, EWOS has a solid foundation for growth. We are committed to supporting the management team's strategy for further expansion," says Hugo Maurstad of Altor Equity Partners.

"EWOS is the undisputed leader in the shift toward sustainable value-added feeds, with world-class research facilities and an unrivaled history of successfully partnering with our customers to drive superior outcomes for the aquaculture industry. EWOS has already taken the first step towards growth in emerging markets and we expect to continue to explore opportunities globally to leverage our knowledge base, expertise, and leadership," says Edward Han of Bain Capital.

EWOS has produced fish feed since 1935 and today, the company operates in all four of the world's major salmon farming regions: Norway, Chile, Canada and Scotland. In addition EWOS has entered the feed market in Vietnam. EWOS continuously invests in research and development in order to maintain its strong reputation as the leader in its field. EWOS had 1024 employees at year end 2012.


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