Morpol ASA buys Mainstream Scotland from Cermaq ASA

August 23, 2010 08:12
Morpol ASA has acquired 100% of Mainstream Scotland for an enterprise value of NOK 350 million. The combined Morpol - Mainstream Scotland companies will become a unique vertically integrated player in the salmon farming and processing sector, reports ( with reference to the company.

Mainstream Scotland is part of Mainstream Group, a wholly owned subsidiary of Cermaq ASA, the large Norwegian listed company which is active in both fish farming and fish feed. Mainstream Scotland is the main salmon producer in the Orkney Islands. In Shetland, Mainstream's production represents some 10 percent of the total annual harvest volume of the island. Mainstream Scotland has fresh water production facilities on the Scottish mainland and primary processing plants in Orkney and Shetland. Mainstream Scotland expects to harvest 6,500 tonnes of Atlantic Salmon in 2010. In 2009 Mainstream Scotland had a turnover of NOK 196.7million which is expected to increase to over NOK 230 million in 2010.

The closing date for the transaction is expected to take place 25 August 2010.

"It is exciting for Morpol to make the first step into salmon farming, particularly entering first in Mainstream Scotland which we believe has a significant potential for growth over today's production levels. We intend to use this acquisition as a platform for market penetration in the UK and French markets and will further invest in processing to align Morpol with our customers' needs. We believe we can extract synergies in the value chain and enhance margins while at the same time increasing our presence in other markets such as the U.S. which prefers Scottish origin salmon. With this step, we secure about 10% of our raw material needs," says Mr Jerzy Malek, CEO of Morpol.

Mainstream results in Scotland have been improving over the last years. EBIT of NOK 8.80 per kg was realised in the second quarter 2010. With over 4,000 tonnes of the annual sales to be made in the second half 2010, the company is positioned to achieve solid profits in this period. Mainstream Scotland financial results will be consolidated into Morpol ASA from 1 August 2010.

For further information, please contact: Steven Rafferty, Chief Financial Officer, phone +47 97 66 41 04 John-Paul McGinley, Chief Operating Officer, phone +48 507 030 019

About Morpol

The Morpol Group is engaged in salmon processing as well as sale and distribution of finished salmon products. The Morpol Group's main products are: cold and hot smoked salmon, gravadlax, fresh salmon fillets, frozen salmon portions, organic salmon, wild salmon and salmon specialties. The Morpol Group had revenue of approximately EUR 340 million in 2009.

Founded in 1996 in Ustka on the Baltic coast of Poland, the company employs over 3,000 people in eight countries. Morpol Group is the world leader in smoked salmon. The company has achieved its world leading position through the efficiency of processing activities, a constant focus on product quality and service provided to retail and food service customers. Morpol serves customers across Europe, Japan and the United States.

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