Cargill has entered into an agreement with Altor Fund III and Bain Capital Europe III to acquire EWOS, a global leader in salmon nutrition for EUR1.35 billion (US$1.5 billion). The transaction, which is subject to regulatory approvals, is expected to close before the end of the calendar year.
"This transaction, which is significant and the second aquaculture acquisition Cargill has announced in as many months, is a strategic investment in our long-term growth and evidence of our commitment to the growing aquaculture industry," said David MacLennan, Cargill president and CEO.
The acquisition gives Cargill entry into the salmon market and will make Cargill's animal nutrition business a leading player in the growing salmon feed industry, one of the most advanced and professionally managed segments in global aquaculture. As part of the transaction, Cargill will acquire seven feed manufacturing facilities; three in Norway, and one each in Chile, Canada, Scotland and Vietnam, as well as two state-of-the-art R&D centers located in Norway and Chile. EWOS produces more than 1.2 million metric tons of salmon feed for the biggest salmon producers in the world.
"EWOS is a winning company," said Sarena Lin, president of Cargill's Feed & Nutrition business. "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. We are looking forward to welcoming 1,000 highly talented and passionate EWOS employees to the Cargill Animal Nutrition team and strengthening our R&D capabilities and accelerating the pace of innovation to drive strategic long-term growth for Cargill's animal nutrition business."
Einar Wathne, CEO of EWOS, said: "Cargill and EWOS will create a new, world-class aqua feed supply capability that will support the growth potential for fish and seafood consumption and create new opportunities for customers and employees alike. EWOS has a strong brand and a deep commitment to high product quality, its people and sustainable aquaculture. Adding Cargill's vast resources and global reach to EWOS' leading R&D expertise, will allow the new organization to provide world-class, innovative products and solutions to the global aqua industry."
Cargill has established a strong track record of acquiring and integrating businesses, unlocking additional value for customers by leveraging the talent and capabilities of acquired organizations in combination with Cargill's global footprint, scale, breadth and depth of talent, and operational excellence, risk management, and expertise in animal nutrition, and supply chains.
The acquisition adds to Cargill's existing aquaculture capabilities in Mexico, Central America, China, United States, Southeast Asia, India, and Ecuador, to which EWOS is expected to contribute complementary expertise and leadership. With this investment, the company will continue to leverage its global research and development capabilities, which includes 15 R&D and Technology Application facilities around the world.
This acquisition is the second Cargill investment in aquaculture over the last month. In early July, Cargill announced a $30 million joint venture with Naturisa to build a shrimp feed facility in Ecuador.
"With the need for protein expected to grow by 70 percent worldwide by 2050, farmed fish and shrimp offers one solution to meeting this demand, and Cargill intends to play a major role in this growing and important market," Lin said.