Danish company BioMar Group, the world’s third-largest manufacturer of feed for the fish farming industry, announced a deal for 70% of Ecuadorian shrimp feed manufacturer Alimentsa for about DKK 800 million ($121m) on Friday.
The acquisition takes BioMar, which is wholly owned by the Danish industrial conglomerate Schouw & Co, into a new area in shrimp feed.
“Shrimp is the largest business segment within the global aquaculture that we have still not ventured into,” said Carlos Diaz, CEO of BioMar, in a statement.
Alimentsa has 145 employees and generated revenue of about DKK 500m in 2016. The current owners will continue as minority shareholders of the company, said BioMar.
The acquisition of Alimentsa is subject to customary regulatory approvals and Schouw expects to consolidate the company from the autumn of 2017.
“After several years of preparation, we have attained a very attractive opportunity to take a major leap into the shrimp feed market through the acquisition of Alimentsa. This is a market currently witnessing very high growth rates – not least in South America, and the growth momentum is expected to continue,” he said.
Alimentsa accounts for 10-15% of Ecuador’s shrimp feed production
Ecuador currently ranks among the world’s five largest shrimp manufacturers with an estimated annual shrimp production of 450,000 metric tons.
Guayaquil-based Alimentsa was established in 1986 by its current owners, who have roots in Denmark and Germany, and its factory has an annual output capacity of about 110,000t of shrimp feed.
“Alimentsa’s high-quality products are a good match with our profile. We aim to deliver quality feed and expect to create clear-cut synergies with Alimentsa through our long-standing R&D [research and development] track record, including experience in substituting the scarcest resources. As a global group, we will be able to contribute cheaper and better procurement sources and a comprehensive global sales network,” said Diaz.
“We now also have the opportunity to build know-how in the production of shrimp feed and shrimp from some of the best players in the industry, and we can of course use this experience in other parts of the world.”
As with all aquaculture activities, shrimp production is exposed to biological and climate risks, but BioMar and BioMar’s owner generally see a great potential in Alimentsa Alimentsa and the entry into the global shrimp feed market, they said.
“We have invested heavily in BioMar in recent years. We are in the process of making a solid footprint in the Chinese market, and we recently started to build a new factory in Australia. Now, we are making a significant entry into the global shrimp feed market,” said Jens Bjerg Sorensen, Schouw president.
“BioMar are specialists in sustainable aquaculture, and the market for high quality feed is witnessing strong growth. We need to capitalize on these trends also in the area of shrimp feed,” he said.
Schouw has owned BioMar since 2005, and in the intermediate years revenue has trebled to nearly DKK 9 billion in 2016.
Last year, BioMar produced almost 1m metric tons of fish feed at its 13 factories in Norway, Scotland, Chile, Denmark, Spain, France, Greece, Turkey, China and Costa Rica. In 2017, capacity will be expanded by nearly 200,000t, with Alimentsa adding about another 90,000t.