Benchmark to sell off its genetics business
The Benchmark group has reached a deal to sell its Genetics business to a subsidiary of Danish investment giant Novo Holdings.
Benchmark Holdings, the London-based parent company of the Benchmark Group, said the agreement places an enterprise value of up to £260m on Benchmark Genetics, including an initial consideration of £230m and an additional contingent consideration of up to £30m in the form of an earn-out.
Benchmark Genetics focuses on producing salmon ova and genetic services for the finfish and shrimp sectors. It comprises Benchmark Genetics Norway AS, Benchmark Genetics Iceland H.F., Benchmark Genetics Chile and Benchmark Genetics Shrimp. The company’s breeding centres are located in Norway, Iceland, Chile, the USA and Colombia.
The divestment of the Genetics arm will leave Benchmark Holdings with the Advanced Nutrition and Animal Health businesses. The company said the deal: “…creates an opportunity to reduce complexity and streamline the current group structure to significantly reduce costs.”
The purchaser is Starfish Bidco, a wholly owned subsidiary of Novo Holdings, the holding and investment company that is responsible for managing the assets and the wealth of the Novo Nordisk Foundation, one of the world’s largest enterprise foundations. Headquartered in Denmark, the Foundation holds controlling shares in the Novo Nordisk group, one of the world’s largest healthcare businesses.
Completion of the sale is expected during the first quarter of 2025, subject to shareholder approval and receipt of customary regulatory clearances. The move brings to an end Benchmark’s strategic review and will allow the group to pay off a significant portion of its corporate debt, reducing costs.
Unlocking value
Trond Williksen, Benchmark CEO, commented: “I am pleased to announce this agreement to sell our genetics business to Novo Holdings. The Transaction will unlock significant value and enable us to return capital to shareholders.
“The Disposal will also allow us to focus all our efforts on developing the significant potential of our continuing business areas, Advanced Nutrition and Health. In addition, it will enable us to reduce complexity and streamline the Group structure to significantly reduce costs.”
He added: “I would like to thank all our colleagues who have been working tirelessly this year to deliver a robust performance amidst difficult market conditions. Novo Holdings will be an excellent new owner of the genetics business and is in an ideal position to take the business forward.”
Aleks Engel, Partner at Novo Holdings, said: “We are very pleased to announce plans to acquire the Benchmark genetics business from Benchmark Holdings. Both animal and plant genetics hold immense potential to transform the global food industry, enabling more efficient and sustainable ways to feed a growing population. In particular, advancements in aquaculture genetics, such as those in the salmon industry, present significant opportunities to improve productivity, resilience, and environmental outcomes.”
For the 12 months to 30 June 2024, the Genetics Business generated revenue of £57m and adjusted EBITDA of £14.5m. The net assets of the Genetics Business as at 30 June 2024 amounted to £52.8m.
Benchmark Holdings expects to release its full year results for the 12-month period ended 30 September 2024 on 12 December 2024.
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