Sheffield’s Benchmark Holdings to acquire aquaculture specialist for £227m

Sheffield-headquartered Benchmark Holdings has reached an agreement to acquire INVE Aquaculture Holding B.V., a specialist manufacturer of primary stage technically advanced nutrition and health products for aquaculture, for a total consideration of £227m.

Of the transaction, approximately £199m will be payable in cash and £28m will be satisfied through the issue of Consideration Shares. Following the acquisition, which is expected to be earnings enhancing in the first full financial year post-completion, INVE management will join Benchmark and invest in shares.

The cash consideration is being financed by a placing of new shares to new and existing institutional investors raising approximately £185.7m through the placing of 215,922,141 new Benchmark shares at 86p per share. The balance will be satisfied with debt funding to be drawn under New Debt Facilities provided by HSBC Bank plc and Rabobank.

The acquisition will create a new company that serves customers in more than 70 countries across six continents, and there will be 40 addition products in development with little or no duplication with the Group’s existing pipeline.

Malcolm Pye, chief executive of Benchmark, commented: “The acquisition of INVE makes Benchmark a global leader in the aquaculture technology market overnight. Aquaculture is not only a multi-billion dollar sector but one of the fastest growing in the food industry. Importantly we believe the teams at Benchmark and INVE share a common ethos and culture. Both companies have a history of working collaboratively with partners to develop technologies, and both have a drive to address one of the most pressing issues of our time in developing a healthy, sustainable food chain.

“Since listing, Benchmark has a proven track record of successfully integrating acquisitions - as with SalmoBreed and StofnFiskur last year - and this deal underpins our future growth ambitions. The potential opportunities and synergies presented by INVE offer a step-up both in terms of the technology applied in our products, and the marketing and distribution network already present in some of the fastest growing markets in the world.”

Philippe Léger, chief executive officer of INVE, added: “Stimulating healthy growth and performance in aquaculture has always been INVE Aquaculture’s main driver. Becoming part of the Benchmark group will definitely reinforce this. This new milestone on our growth path unlocks INVE’s inherent potential to serve our customers globally with the industry’s most comprehensive portfolios of specialized aquaculture products.

“Benchmark’s toolbox of health and genetics solutions will complete INVE’s current offering in advanced nutritional and health products. Together we will become a unique knowledge and solutions platform that supports our customers in taking better care throughout the culture lifecycle. As a result we can more effectively than ever contribute to our clients’ sustainable growth and long-term success.”