Animal nutrition and aquafeed leader Nutreco Norwegian seafood group Holmøy have agreed to invest in Andfjord Salmon, as part of a NoK38 million private placement. In addition, Andfjord Salmon has entered into an operational feed supply agreement with Nutreco’s aquaculture business line, Skretting.
‘Nutreco is a highly reputable player in the aquaculture space, investing in the industry, with Skretting supplying world-leading feed and services to aquaculture producers all over the world. Holmøy is a highly respected Norwegian seafood group with strong local connection to Andfjord Salmon. We are delighted to enter into these agreements, which will bring on board two strategic investors to Andfjord Salmon and secure supply of our preferred feed,’ said Andfjord Salmon CEO Martin Rasmussen.
‘At Nutreco we are committed to our purpose of Feeding the Future. Our investment in Andfjord Salmon fully supports our ambitions to provide solutions to a dynamic and important sector that is essential to ensure that aquaculture continues to meet the seafood needs of our growing global population in a sustainable way,’ commented Nutreco Investment Director Erik Tveteraas.
Holmøy is one of Norway’s largest players within whitefish and salmon. The group’s main activities are operation of trawlers through Prestfjord AS; ocean-based fish farming through Eidsfjord Sjøfarm AS, which has an annual production of 20,000 tonnes Atlantic salmon; and Holmøy Fryseterminal, which offers cold storage of fish and other services. Holmøy group will invest in Andfjord Salmon through its fish farming company Eidsfjord Sjøfarm AS, which already owns 66,400 shares in Andfjord Salmon.
‘Fish is our area of expertise, and we are dedicated to developing new technologies and production methods. Investing in Andfjord Salmon is therefore a natural commitment to an industry we are passionate about and where both companies are strongly connected to Vesterålen and North-Norway. We also hope that this investment can stimulate discussions about further cooperation opportunities between the Holmøy group and Andfjord Salmon,’ said Knut Roar Holmøy, CEO of the Holmøy group and member of Andfjord Salmon’s board of directors.
Nutreco will invest NoK20 million in Andfjord Salmon, while Eidsfjord Sjøfarm will invest NoK8 million.
Under the agreement, Andfjord Salmon will issue, and Nutreco and Eidsfjord Sjøfarm will, respectively, subscribe for 505,050 and 202,020 new shares in Andfjord Salmon through a directed private placement. In addition, Andfjord Salmon’s founder and board member Roy Bernt Pettersen will contribute a further NoK10 million in new equity, by subscribing for 252,525 new shares in the private placement.
In conjunction with investment, Andfjord Salmon has entered into a long-term, running strategic feed supply agreement with Skretting. The feed supply volume will be adapted on an ongoing basis to Andfjord Salmon’s production volumes of Atlantic salmon.
Under the agreement, Skretting commits to supply a feed that is specifically tailored to Andfjord Salmon’s flow-through technology to ensure optimal water quality, fish welfare and growth conditions in the land-based pool. This will also ensure the production of a premium quality salmon.
Skretting’s experts will also participate in a technical advisory committee, which will provide advice to Andfjord Salmon’s production protocols and regularly evaluate production KPIs with the objective of further improving conditions for the fish.
‘Our aim is to have the world’s most fish-friendly and sustainable fish farming facility of its kind. That is why we are entering into a long-term agreement with a partner that is dedicated to the continuous development and evolution of fish feed ingredients and combinations, driving the sustainability transformation within raw materials for fish feed,’ Martin Rasmussen added. ‘This cooperation with Skretting will help to optimise fish welfare and growth conditions while keeping our environmental footprint as small as possible.’