Strategic Consolidation in European Fishmeal and Fish Oil Industry
The combination of Welcon and UFI will bring benefits in terms of improved raw material landing and conversion efficiencies, a world class product offering supported by superior customer logistics together with the optimisation of North Atlantic production capacity.
05/02/09 Origin Enterprises plc and Austevoll Seafoods ASA announce that they have reached agreement to combine their respective Irish, UK and Norwegian fishmeal and fish oil operations. The combination will enhance the position of the businesses in the globally traded marine proteins and oils sector.
Origin through its marine protein operations, (‘United Fish Industries’ or ‘UFI’) is a leading producer of fishmeal and fish oil in Ireland and the United Kingdom. Austevoll’s wholly owned Norwegian subsidiary Welcon Invest AS is Europe’s premier manufacturer of fishmeal and fish oil with operations in Norway. Austevoll, through separate subsidiaries, has major marine protein operations in Chile and Peru.
Origin has transferred its interest in UFI to Welcon together with a cash contribution of €16m in return for a 50% shareholding in the combined business. Proforma turnover of the enlarged group is approximately €175m.
Welcon will be led by a strong management team comprised of executives from both businesses. Arne Stang will continue as Chief Executive Officer and Tom Tynan, Managing Director of UFI has been appointed Chief Operations Officer of the Company. The Board of Welcon will comprise equal representation from both shareholders.
The combination of Welcon and UFI will bring benefits in terms of improved raw material landing and conversion efficiencies, a world class product offering supported by superior customer logistics together with the optimisation of North Atlantic production capacity.
Commenting on the announcement Tom O'Mahony, CEO of Origin said, “This merger furthers the strategic development of Origin and represents a significant repositioning of the North Atlantic fishmeal and fish oil industry. Austevoll’s global position as a leading integrated pelagic fishery specialist with proven industry reputation brings enormous strengths to the enlarged group. Austevoll is an ideal partner who shares our commitment to the further development of the industry in Europe.”
Commenting on the transaction, Ole Mogster, Chairman of Austevoll said “Origin has demonstrated a track record in building strong positions in its sectors and we are very pleased to have Origin as a partner. The combination will greatly contribute to underpinning the future development of the North Atlantic fishmeal and fish oil
industry.”
