Benchmark Holdings plc has entered into a binding agreement to sell its genetics business, Benchmark Genetics, to Starfish Bidco, a wholly owned subsidiary of Novo Holdings, valuing the enterprise at up to £260 million.
Headquartered in Bergen, Norway, Benchmark Genetics is a leader in salmonid genetics, providing eggs and other genetic services to both traditional and land-based farmers, operating across Norway, Iceland and Faroe Islands, Chile, and other major geographies.
The company’s core genetics offering drives resource efficiency in fish and shrimp farming by addressing key production challenges including growth rates, feed conversion and disease resistance. Benchmark Genetics has customers in more than 50 countries and employs 270 people globally.
Trond Williksen, Benchmark CEO, stated that “the transaction will unlock significant value and enable us to return capital to shareholders. It will also allow us to focus all our efforts on developing the significant potential of our continuing business areas, Advanced Nutrition and Health. In addition, it will enable us to reduce complexity and streamline the group structure to significantly reduce costs. Novo Holdings will be an excellent new owner of the genetics business and is in an ideal position to take the business forward."
Aleks Engel, partner at Novo Holdings, highlighted the potential of animal and plant genetics to transform the global food industry. “In particular, advancements in aquaculture genetics, such as those in the salmon industry, present significant opportunities to improve productivity, resilience, and environmental outcomes."
Johan Hueffer, senior partner, Principal Investments, Novo Holdings, added that "the investment in Benchmark Genetics provides us with increased exposure to the salmon industry, which benefits from highly attractive underlying dynamics. Further, it represents an opportunity to support a leading animal genetics platform with global ambitions. Partnering with an experienced management team, we are confident in the company’s ability to drive meaningful advancements in this field. At Novo Holdings, we are excited to leverage our industry experience and extensive network to help realize the company’s full potential and contribute to sustainable growth in the aquaculture sector.”
In early 2024, Benchmark announced a strategic review of its options, including selling the company as a whole or individual business units. Following a thorough process, the board determined Novo Holdings' offer for the Genetics Business was the best option for shareholders and the company’s future direction.
The Genetics Business generated £57.0 million in revenue and an adjusted EBITDA of £14.5 million in the twelve months ending June 30, 2024. Its net assets were valued at £52.8 million as of June 30, 2024.
Focus on nutrition and health business
The sale will allow the company to focus on its Advanced Nutrition and Health business areas.
The group's strategy in Advanced Nutrition will continue to be focused on delivering specialist nutrition and health solutions that leverage its technical and innovation capabilities to aquaculture farmers globally. While conditions in the company's core cyclical shrimp market have been challenging in FY24, the business has delivered a solid performance year to date demonstrating resilience and commercial focus. Looking forward, the company expects the business to benefit strongly as the shrimp markets recover.
In Health, following the significant reorganization undertaken in FY24 to pivot the company's innovative sea lice solution, Ectosan® Vet and CleanTreat®, to a less capital-intensive model, the company said it now has a profitable organization.
