Norcod in major slaughterhouse investment

Whitefish farming company Norcod is buying a new slaughterhouse in south central Norway.

The exact purchase price has not been disclosed, but it is likely to total several million kroner and is being paid for partly in shares and partly in cash.

The news comes just a week after Norcod set out a long term business strategy for near sevenfold growth.

The company’s annual report said that Norcod is experiencing increasing demand for year-round stable deliveries of fresh cod.

Norcod told the Oslo Stock Exchange it has entered into an agreement to purchase 100% of the shares in Kråkøy Slakteri AS and TN Kråkøy Eiendom AS.

The statement went on: “Kråkøy Slakteri had NOK 63m (£46m) in revenues in 2022 and delivered an EBIT (operating profit) of around 5% which will add to Norcod’s free cash flow going forward.

“The transaction is expected to create operational synergies and enable cost efficient operations in Norcod’s value chain. The transaction involves 53 full-time employees at Kråkøy Slakteri AS.”

Norcod CEO Christian Riber added: “Led by our strategy for growth, this vertical integration of our value chain is a strategic step to improve our operations and create a robust and streamlined business model.”

Roger Sørgård, CEO of Kråkøy said: “Being part of Norcod will accelerate our growth ambitions and enable our efforts to scale our offering. Joining forces with Norcod is an acknowledgment of the success we have had serving the local market with harvesting services.”

The Stock Exchange announcement said the purchase price will be settled partly in cash and partly in consideration shares in Norcod .

The number of consideration shares to be issued will be 577,639 at a subscription price of NOK 36 per share, which is equal to the trading price the last day prior to signing of the share purchase agreement.

Christian Riber, CEO Norcod