Aker BioMarine plans $590m divestment of krill feed business to new joint venture

By Jane Byrne

- Last updated on GMT

© GettyImages/Gerald Corsi
© GettyImages/Gerald Corsi
Aker BioMarine has finalized an agreement to divest its feed ingredients business to a newly formed entity, established by American Industrial Partners (AIP) and Aker Capital (Aker), for an enterprise valuation of $590m.

The new company will be 60% owned by AIP and 40% owned by Aker Capital.

This strategic move follows Aker BioMarine's announcement in February of a comprehensive review of its feed ingredients division. The sale is poised to unlock substantial shareholder value and enable the Norwegian biotech to sharpen its focus on the human health and nutrition sectors.

Matts Johansen, CEO of Aker BioMarine, says the deal attracted considerable interest from numerous reputable parties.

The transaction, he adds, highlights not only the value of the feed ingredients business but also shores up Aker BioMarine’s overall value potential. “We are committed to exploring further opportunities to drive shareholder value through partnerships and transactions for our remaining business units."

The deal is anticipated to be completed by the third quarter of 2024, pending regulatory approvals. Upon finalization, Aker BioMarine plans to refinance its debt to optimize leverage for its remaining business segments.

'Signficant growth'

The feed ingredients business produces krill meal, a marine ingredient used in aquaculture feed and pet food, marketed as Qrill Aqua and Qrill Pet, along with krill extraction for human consumption. It operates three specialized harvesting vessels and one support vessel, conducting production in Antarctica with advanced, sustainable harvesting technology. 

In February, Aker BioMarine reported that the feed ingredients division had seen significant growth, achieving adjusted revenues of around US$156m for FY23 and an adjusted cash EBITDA of about US$49m.

Post-transaction, Aker BioMarine will concentrate on its core areas: human health ingredients, consumer health ingredients, and emerging businesses.  

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