Mowi expands into Northern Norway with major acquisition deal

The move comes just over a year after Mowi’s acquisition of a controlling stake in the much larger salmon farm business Nova Sea.

The value of this latest deal is estimated at around NOK 293 million (£22.6m).

Torghatten Aqua is a salmon farming conglomerate in production area 8 in Northern Norway. It is engaged in several activities, including renting out salmon licences and seawater sites (joint operation agreement with a third party) as well as education, land-based salmon farming and consulting.

Mowi CEO Ivan Vindheim said: “Upon Mowi’s acquisition of Nova Sea last year, we became the owner of a 33.34% stake in Torghatten Aqua.

“Mowi has now entered into an agreement to carve-out and purchase 3.37 licences in total (2,628 tonnes maximum allowed biomass); 1.37 commercial licence, one exhibition license and one education licence.”

Mowi said it expects to harvest around 4,500 metric tons (gross weight) annually from the licence portfolio.

CEO Vindheim continued: “Torghatten’s seawater farming business is a very good match with Mowi Region North and will further strengthen Mowi’s leading presence in Northern Norway.

“The transaction will strengthen Mowi’s position in an area known for its excellent biological performance which is already core to Mowi Region North, and it supports our long-term strategy to sustainably grow our harvest volumes in a cost competitive way.”

Part of the transaction involves Mowi returning its 33.34% stake in Torghatten Aqua, so that Torghatten can develop its non-seawater operations on a standalone basis.

The agreed cash consideration, on a net basis, from Mowi to Torghatten Aqua is NOK 293 million (€26 million euros), payable upon closing.

The transaction is subject to approval by the Norwegian competition authority and customary closing conditions.