Cargill buys Norwegian fish-feed producer EWOS for $1.5 billion

The firm announced in July a $30bn (£19.25bn) joint venture with Naturisa to build shrimp feed facilities in Ecuador, in which Cargill holds 75 per cent of the investment and manages day-to-day operations.

Wayzata-based Cargill has bought EWOS from Altor Fund III and Bain Capital Europe III, who have owned the company since 2013, and they will remain invested in the fish-farming sector through their ownership of Nova Austral in Chile.

One of the world’s biggest producers of feed for the salmon farming industry is to be taken over in a €1.35 billion (£958 million) deal.

Bergen-based Ewos, which produces greater than 1.2 million metric tonnes of salmon feed a yr, is Cargill’s largest acquisition after its buy of animal-feed group Provimi in 2011.

Under the deal, Cargill will acquire seven feed manufacturing facilities: One in Canada, Chile, Scotland, Vietnam and three in Norway, as well as two research development centers in Chile and Norway.

With worldwide protein demand on the rise, Fitch believes farmed fish represents an opportunity for Cargill to expand its business into an increasingly important segment of the protein industry.

The transaction is expected to close before the end of the calendar year, subject to regulatory approvals.

“This transaction is a strategic funding in our long-term progress and proof of our dedication to the rising aquaculture business”, stated Cargill boss David MacLennan. “Adding its industry-leading talent and capabilities as well as its thought leadership in sustainable business practices will be transformational for our aquaculture nutrition business”.

Einar Wathne, chief government of Ewos, stated: “Cargill and EWOS will create a brand new, world-class aqua feed provide functionality that may help the expansion potential for fish and seafood consumption and create new alternatives for patrons and staff alike”.