Grieg Seafood ASA sells its Shetland operations for GBP 164 million

Grieg Seafood ASA has entered into an agreement with Scottish Sea Farms Ltd for the disposal of all shares in Grieg Seafood Hjaltland UK Ltd, the parent company of Grieg Seafood ASA’s Shetland business. The enterprise value is set to GBP 164 million, assuming a normalized working capital, and to be adjusted for cash and debt.

The transaction is subject to certain customary closing conditions. It is expected to close within Q4 2021, depending on processing time with relevant competition authorities.

Commenting on the transaction, Andreas Kvame, CEO of Grieg Seafood ASA, said:

“The discontinuation of our salmon farming operations in Shetland is part of our communicated strategy, and the disposal represents an important milestone in Grieg Seafood’s strategy to concentrate future farming activities in Norway and Canada, where we see the largest potential for profitable growth.

Following a three-year long period of restructuring and operational improvement, Shetland is now showing good performance with sea lice levels at an all-time low, increasing survival and a high superior share. I am pleased to say that we hand over operations in good shape.

I want to sincerely thank all employees of Grieg Seafood Shetland for their impressive efforts, especially during the difficult times of the pandemic. I am confident that the Shetland business will be in good hands and that salmon farming will continue to create value for the local communities in Shetland for years to come.”

Towards 2025, Grieg Seafood ASA aims to grow production to 130 000 tonnes of annual harvest, reduce costs and reposition the Company in the value chain through downstream partnerships. All areas are based on sustainability, which is the Company’s license to operate and integral to long-term value creation.

Concentrating focus, resources and investments to the Norwegian and Canadian farming regions, as well as a strengthened balance sheet, will enable the Company to better pursue opportunities for sustainable growth in these geographical areas and strengthen the execution of the 2025 strategy. Operational focus areas remain post-smolt, digitalization and improved fish health and welfare.