#Novo Holdings #Benchmark Genetics #Aquaculture #Denmark #Copenhagen

Novo Holdings Acquires Benchmark Genetics: A Significant Step in Aquaculture

In a strategic move aimed at enhancing its foothold in aquaculture technology, Novo Holdings has officially announced its intention to acquire Benchmark Genetics, a front-runner in fish genetics based in Norway. With an enterprise value reaching up to £260 million, this acquisition aligns perfectly with Novo Holdings' commitment to advancing sustainability and innovation in the aquaculture sector.

About Benchmark Genetics

Benchmark Genetics has established itself as a leader in salmonid genetics, providing high-quality eggs and genetic services to both traditional and land-based farmers. Its operational footprint spans several key regions, including Norway, Iceland, the Faroe Islands, and Chile. The company addresses critical production challenges within fish and shrimp farming through its genetic offerings, which enhances resource efficiency by improving growth rates, feed conversion, and disease resistance.

Employing approximately 270 people globally, Benchmark Genetics serves customers in over 50 countries, making it a significant player in the aquaculture ecosystem. The company's dedication to improving animal welfare and fostering sustainable practices has garnered attention and respect across the industry.

Strategic Importance of the Acquisition

The acquisition is part of Novo Holdings’ Planetary Health Investment team strategy, which increasingly emphasizes technologies that promote sustainable growth in food production. Aleks Engel, a Partner in the investment team, expressed his enthusiasm about the acquisition, stating, “Both animal and plant genetics hold immense potential to transform the global food industry. The advancements in aquaculture genetics provide not only a lucrative opportunity but also a crucial means to achieve environmental sustainability.”

This sentiment is echoed by Johan Hueffer, Senior Partner at Novo Holdings, who elaborated on the attractive market dynamics of the salmon industry. “We are excited to support a leading platform in animal genetics with global ambitions. This partnership presents us an opportunity to assist Benchmark in realizing its full potential through our industry experience,” he stated.

Trond Williksen, CEO of Benchmark, highlighted the potential for growth and spoke highly of Novo Holdings as a preferable steward for the company’s future. He noted that with Novo, Benchmark Genetics is well-equipped to enhance productivity and sustainability in aquaculture.

Financial Aspects of the Deal

The transaction details reveal an initial consideration of £230 million with an additional contingent consideration up to £30 million based on future revenue thresholds. Completion of the deal is anticipated during the first quarter of 2025, subject to shareholder approval and typical regulatory clearances. Notably, shareholders holding about 71% of Benchmark’s ordinary shares have consented to support this transaction.

PJT Partners is serving as the financial advisor for Novo Holdings, while Latham & Watkins is providing legal advice.

The Broader Context

This acquisition not only strengthens Novo Holdings' position within a vital segment of the global food supply chain but also amplifies its mission to bolster sustainable methods of food production. With an impressive portfolio that extends across various sectors, including life sciences and investments in diverse companies, Novo Holdings is well-poised to drive change and innovation in the aquaculture field.

As the world faces increasing pressure on food systems to become more efficient and sustainable, partnerships like that between Novo Holdings and Benchmark Genetics represent a crucial step towards addressing these challenges. In a dynamic industry that holds the key to healthier food systems and responsible production practices, the future indeed looks promising for Benchmark under the stewardship of Novo Holdings.