Mowi has entered into an agreement with Vigner Olaisen AS to acquire its controlling stake in Nova Sea AS. This will result in Mowi’s ownership share increasing from 49% to 95%, and Mowi will subsequently make a voluntary cash offer for the remaining shares.
Nova Sea produces salmon in production area 8 in Northern Norway and occupies the whole value chain from broodstock and smolt production to harvesting and sales. The company expects to harvest 52,000 tonnes of salmon in 2025.
Mowi has been a large minority owner in Nova Sea since 1995 and knows the company well. Mowi CEO, Ivan Vindheim, is impressed by what the company and its owners have achieved.
“Nova Sea is a frontrunner in the Norwegian aquaculture industry and is known for its excellent biological performance and industry-leading margins. For over 50 years, the company and the Olaisen family have invested in the organization and developed it into an impressive, fully integrated operation. It is therefore with great pleasure that we are now, after 30 years, combining our operations,” said Vindheim.
Mowi already has a substantial presence in Northern Norway and, when combined with Nova Sea, will have expected harvest volumes for 2025 of 157,000 tonnes of salmon in Northern Norway, 367,000 tonnes in Norway as a whole, and 572,000 tonnes globally.
“Combining with Nova Sea will strengthen Mowi as a national and global powerhouse for innovation and sustainability through the development and application of new technologies to promote better fish welfare,” said Vindheim.
Aino Olaisen, chairman of Nova Sea, said that she considers Mowi a leader within aquaculture as regards its operations, innovation and not least its sustainability. “This will be an excellent development for the company, the organization and the whole region.”
Mowi’s largest shareholder will propose to the nomination committee that Aino Olaisen join the Mowi board after the completion of the transaction.
Mowi CEO, Ivan Vindheim, believes that Mowi and Nova Sea are an excellent operational fit for each other, and expects the transaction to result in significant synergies, preliminarily estimated at NOK 400 million (EUR 34 million). These include better MAB utilization and an improved license and site portfolio in Region North.
“This transaction will strengthen our presence in one of the world’s best regions for farming Atlantic salmon, as well as bringing about improved biological results and biosecurity,” said Vindheim.
Mowi will acquire Vigner Olaisen’s remaining shares in Nova Sea for NOK 7.4 billion (EUR 625 million), of which 30% will be settled through issuing new Mowi shares and 70% will be settled in cash. The transaction values Nova Sea’s equity at NOK 16 billion (EUR 1.36 billion), while net interest-bearing debt at the end of 2024 was NOK 0.5 billion (EUR 46 million).
Nova Sea expects to harvest 52,000 tonnes in 2025, so the company is valued at NOK 290 per kg when adjusted for the value of non-core assets. This is equivalent to EV/EBIT of 9x based on Mowi Norway Region North’s 3-year average margins, before synergies.
Mowi will make a voluntary cash offer on comparable terms to the shareholders owning the remaining 5% of Nova Sea, at NOK 0.8 billion (EUR 68 million).
