Benchmark divests genetics business to Novo Holdings for US$330M

NORWAY – Benchmark Holdings plc has announced the sale of its genetics division, Benchmark Genetics, to Starsh Bidco, a subsidiary of Novo Holdings, in a transaction valued at up to £260 (approximately US$331) million. 

The move reflects Benchmark’s strategic decision to narrow its focus to its Advanced Nutrition and Health sectors while creating value for its shareholders and streamlining operations.  

Benchmark Genetics, headquartered in Bergen, Norway, is a global leader in salmonid genetics. 

The company specializes in providing high-quality eggs and genetic solutions designed to address critical challenges in aquaculture, including enhanced growth rates, improved feed conversion efficiency, and greater disease resistance. 

Operating in major aquaculture regions such as Norway, Iceland, Chile, and the Faroe Islands, Benchmark Genetics serves customers in more than 50 countries and employs a team of 270 experts worldwide.  

Benchmark CEO Trond Williksen highlighted the transaction’s strategic importance, stating, “The sale unlocks significant value for shareholders and allows us to focus entirely on the immense growth potential of our Advanced Nutrition and Health businesses. It also reduces complexity across the group, leading to significant cost savings.” 

Williksen expressed confidence that Novo Holdings, with its extensive experience and resources, is well-positioned to drive the genetics business to greater heights.  

Novo Holdings sees the acquisition as an opportunity to strengthen its investment in sustainable aquaculture. 

Aleks Engel, partner at Novo, emphasized the transformative potential of genetic advancements, particularly in the salmon industry, to enhance productivity, resilience, and environmental outcomes. 

Johan Hueffer, senior partner at Novo, noted that the acquisition aligns with the firm’s strategy to expand its footprint in the high-growth aquaculture sector while supporting Benchmark Genetics’ global ambitions. 

Novo plans to leverage its expertise and network to foster sustainable growth and innovation within the company.  

The sale follows a strategic review initiated by Benchmark earlier in 2024, which assessed various options, including divesting the company or individual business units. 

After a comprehensive evaluation, the sale of the genetics division emerged as the optimal path forward. The division reported £57 (US$72.6) million in revenue and £14.5 (US$18.5) million in adjusted EBITDA for the year ending June 30, 2024, with net assets valued at £52.8 (US$67.2) million.  

Sharpening focus on advanced nutrition and health

With the divestment, Benchmark will pivot to its Advanced Nutrition and Health businesses, which remain central to its long-term growth strategy. 

The Advanced Nutrition division focuses on delivering innovative feed and health solutions tailored to the needs of aquaculture farmers worldwide. 

Despite challenging shrimp market conditions in FY24, the division showed resilience, and the company expects robust growth as global shrimp markets recover.  

In the Health sector, Benchmark has achieved profitability after a significant restructuring in FY24. This included transitioning its flagship sea lice treatment solutions, Ectosan® Vet and CleanTreat®, to a less capital-intensive model. 

These innovative treatments play a critical role in combating sea lice—a major challenge in aquaculture—and have positioned the company as a leader in sustainable fish health management.  

By divesting its genetics business, Benchmark aims to consolidate its resources, streamline operations, and channel investments into areas with the greatest growth potential. 

Simultaneously, the deal strengthens Novo Holdings’ commitment to advancing sustainable practices in aquaculture, particularly in salmon farming. Together, the move underscores the growing importance of innovation and sustainability in meeting global aquaculture demands.  

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