Mowi has entered into an agreement with Vigner Olaisen to acquire its controlling stake in Nova Sea, leveraging the strong joint position in one of the world’s best areas for salmon farming. The international leader company will pay USD 660.31 million for Vigner Olaisen’s 46% stake in Nova Sea through 30% settlement in Mowi shares and 70% in cash. Mowi expects the transaction to be closed in the second half of 2025.
Nova Sea is a leading salmon farmer in production area 8 in Northern Norway and covers the entire value chain from broodstock and smolt production to harvesting and sales. The company expects to harvest 52,000 tons of salmon in 2025.
Mowi has been a large minority owner in Nova Sea since 1995 and knows the company well. Mowi’s CEO, Ivan Vindheim, recognized to be 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. 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 the CEO.
Improve biological performance and fish health
Nova Sea and Mowi will have a leading position and will continue to invest in one of the world’s greats areas for salmon farming, with an aim to further improve biological performance and fish health. Mowi holds a leading presence in Northern Norway and will, together with Nova Sea, have an expected harvest volume of 157,000 tons of salmon in this region in 2025, as well as 367,000 tons in total for Norway and 572,000 tons worldwide.
“Nova Sea and Mowi are a very good match and this combination will benefit the company, fish welfare and the whole organization. Value creation and community building along the coast, and especially in Northern Norway, is very important to us. I believe this will create more value and more jobs in Nordland over time,” said for his part Aino Olaisen, Chairman of the Board of Nova Sea.
The largest shareholder in Mowi will propose to the nomination committee that Olaisen is nominated Board member of Mowi after completion of the transaction.
Significant synergies
Mowi reported in a press release that the integration is expected to yield significant synergies, including improved capacity utilization by leveraging the location portfolio in Region North and by further strengthening biological performance through investments aimed at improving fish health. Preliminary synergy estimates are in the range of USD 35.69 million on an annual basis.
The transaction is subject to competition approval, including from the European Commission, in addition to certain other standard closing conditions. Mowi today holds 49% of Nova Sea and will now acquire Vigner Olaisen’s 46% in the company for USD 660.31 million through a 30% settlement in Mowi shares and 70% in cash.
The transaction
The transaction values Nova Sea’s equity at USD 1,427.69 million. Net interest-bearing debt at year end 2024 was USD 44.62 million. Nova Sea expects to harvest 52,000 tons in 2025, valuing the company at approximately USD 25.88 per kg adjusted for value allocated to non-core assets. This corresponds to an EV/EBIT of 9x using 3-year average margins for Mowi Norway Region North, before synergies.
Mowi will make a voluntary cash offer on similar terms to the shareholders owning the remaining 5% of Nova Sea for USD 71.38 million.
Settlement for the 51% economic ownership of Nova Sea that Mowi does not already own will be approximately 27% in shares with the rest in cash. Mowi will pay the cash consideration by drawing on the company’s existing credit facilities.
According to Mowi‘s information, the transaction values 100% of Nova Sea’s share capital at USD 1.43 billion. The settlement for the 51% of Nova Sea’s economic ownership that Mowi does not yet own will be approximately 27% in shares and the remainder in cash.
