Pan Fish Group expands

04/01/06 Pan Fish has signed an agreement to take over the remaining 66.66% of the shares in Kritsen Holding. Pan Fish will after the share purchase own 100% of the shares in Kritsen group after the acquisition.

The Kritsen Group, which consists of the operational units Kritsen Landivisiau, Kritsen Châteaulin og Kritsen Pontivy, is one of the leading value added producers of salmon in Europe, with a significant market position in among others France and Italy.

Kritsen has an extensive portfolio of smoked salmon and other seafood delicacies. The company operates under its own brand (KRITSEN) and through private labelling for its customers, and has a solid position both in the retail and restaurant/catering segments of its main markets.

The Kritsen Group expects a turnover in 2005 of NOK 445 million, which is a significant increase compared to 2004. The operating result (EBIT) is expected to be slightly negative for the operating companies in France due to high raw material prices. EBIT at holding level will be negative in the area of NOK 10 million due to high depreciations. The comparable figure for 2004 at holding level was a positive operational result of NOK 11 million.

The equity per 31.12.2004 was NOK 58 million. Pan Fish will acquire 66.66% of the shares in Kritsen Group for NOK 20 million. The company had a debt per November 2005 of NOK 120 million.

Furthermore Pan Fish has entered into an agreement with the other shareholders in one of Norway’s leading exporters of seafood, Aalesundfisk AS, to commit NOK 9.75 million in a share issue in the company. Through the acquisition of Aqua Farms Pan Fish achieved a shareholding of 27.4% in Aalesundfisk. After the share issue Pan Fish will own 44.2% of the outstanding shares in the company.

Aalesundfisk will have a solid balance after the share issue and a strong focus on the global retail segment as well as selected niche segments. Aalesundfisk has over a number of years been considered one of Norway’s absolute top quality marketers of Norwegian salmon. Through its ability to establish long term customer relationships and efficient operations the company has offered its suppliers good terms and stable market potential.

Aalesundfisk will trough its successful strategy be a supplement to Pan Fish own distribution strategy and contribute to a broader and productive distribution of the increased production from Pan Fish in 2006 and the years to come. At the same time Aalesundfisk will continue to be an attractive marketer for the other owners as well as independent farmers in Norway, Scotland and Chile.

Aalesundfisk will have a turnover in the area of NOK 740 million in 2005. The result is not yet final, however it will be affected by the decision by the Board to carry out a substantial restructuring of the balance and activities which is not tied to the Company’s future focus; Marketing of salmon and white fish towards advanced and demanding customers.

The Kritsen Group and Aalesundfisk will together with Pan Fish France constitute the backbone of a new value added division in Pan Fish. The division will be established as of January 1st 2006. The turnover on 100% basis for the combined unit will in 2005 amount to about NOK 1.5 billion.

Through the ownership in Kritsen and Pan Fish France, Pan Fish will be one of the largest value adding producers of salmon targeted directly at the consumer.

http://www.panfish.com/newsread/news.asp?WCE=news&D=1&N=5040&COMP_ID=1&L=2&SORT=102