Benchmark sells genetics division
Company will receive at least £230 million from the purchase of its fish ova producer by Starfish Bidco.
Aquaculture biotechnology company Benchmark Holdings today announced that it has entered into a binding agreement to sell the company's genetics division (Benchmark Genetics Limited and Benchmark Genetics Norway AS with subsidiaries) to Starfish Bidco AS, a wholly owned subsidiary of Novo Holdings A/S.
The value of the genetics division is set at up to £260 million, including an initial payment of £230m and a contingent payment of up to £30m.
The sale marks the conclusion of the formal sales process that was announced in January 2024. It means that Benchmark's other divisions, Advanced Nutrition and Health, are no longer for sale. The Health division's products include Salmosan Vet (azamethiphos) and Ecostan Vet (imidacloprid) lice medicines, the latter of which has so far only been used in Norway.
Net proceeds from the sale of the genetics division will be used to return capital to shareholders and to reduce Benchmark Holdings' debt by repaying its unsecured floating rate listed green bond and drawn amounts under its revolving credit facility provided by DNB Bank ASA in full.
Significant potential
"The sale will also allow us to focus all our efforts on developing the significant potential of our continuing business areas, Advanced Nutrition and Health. In addition, it will enable us to reduce complexity and streamline the Group structure to significantly reduce costs," said Benchmark chief executive Trond Williksen in a stock exchange announcement.
He believes Novo Holdings will be an "excellent new owner of the genetics business and is in an ideal position to take the business forward".
Completion of the transaction is expected during the first quarter of 2025, subject to shareholder approval and receipt of necessary regulatory approvals.
Improved productivity
Aleks Engel, partner at Novo Holdings, said: "We are very pleased to announce plans to acquire the Benchmark genetics business from Benchmark Holdings. Both animal and plant genetics hold immense potential to transform the global food industry, enabling more efficient and sustainable ways to feed a growing population. In particular, advancements in aquaculture genetics, such as those in the salmon industry, present significant opportunities to improve productivity, resilience, and environmental outcomes."
For the last 12 months to June 30, 2024, Benchmark Genetics generated revenue of £57.0m and adjusted EBITDA - a type of profit measurement - of £14.5m. The net assets of the genetics business on June 30 amounted to £52.8m.
Benchmark Holdings also announced today that it expects to publish its annual results for the 12-month period ending September 30, 2024, on December 12, 2024.
