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BioMar Completes Acquisition of Provimi Aqua

DENMARK - BioMar, the third-biggest supplier of fish feed to the aquaculture industry has completed the acquisition of Provimi Aqua with factories in Chile, Denmark and Spain.

CEO of the Danish BioMar Group Nils Agnar Brunborg said: ”We are pleased to have completed this acquisition. By this acquisition we are delivering on our strategy 'Going for Global Growth' in which we set ourselves ambitious targets for growth.

"Strategically BioMar will become a much larger company almost equal in size to the worlds second biggest fish feed producer. The increased scale will make BioMar even more competitive in the future."

Nils Agnar Brunborg added: "We will increase production at the Provimi Dana Feed factory in Horsens by selling more to the fast growing Norwegian market, and therebyat the same time reduce the overcapacity of the Continental European market. In effect we will bring much needed consolidation to the Continental European market.

"In Spain the ProAqua factory in Duenas will contribute to strengthening our position in the Mediterranean market area and bring BioMar closer to many important customers."

"Provimi Aqua is very strong within niches such as feed for eel, emerging species like cod and larval and fry feed. This is areas that are complementary to the business of BioMar, thus the combined company will have a much stronger product offering for customers going forward," Nils Agnar Brunborg,added.

Carlos Diaz VP of BioMar Americas says ”This is a perfect match. For a long time we have been admiring the extremely strong product line that Provimi Alitec has within freshwater feeds. We will not only maintain Alitec as a brand, but we will accelerate development of innovations within freshwater feeds. Combined BioMar and Alitec will have one of the strongest products offerings in the market for specialty products such as functional feeds, health products and medicated feeds."

Carlos Diaz said: "The acquisition includes a 50 per cent ownership stake in a joint venture with AquaChile. The joint venture factory is located next to BioMar’s factory in Pargua providing the opportunity to achieve economics of scale, realise important synergies and access to additional capacity. Through the years we have had a very good commercial relationship with AquaChile, as well as other big farming companies, and we will through this partnership strengthen collaboration in different areas.

"The acquisition doubles BioMar’s market share in Chile to reach a turnover in excess of $200 million and approximately 300 employees. This sends a strong signal that BioMar is a very serious supplier in this market. By completing this acquisition we emphasize that BioMar strongly believe in the growth potential of the Chilean aquaculture industry," Carlos Diaz added.