Deal Announcement

DC Advisory advised The Scottish Salmon Company plc on its strategic review

27 Jan 2020

Background

  • The Scottish Salmon Company plc (SSC) is a fully integrated salmon farming business operating exclusively in Scotland with 60 sites across the West Coast and the Hebrides, having harvested c.34,000 tonnes of salmon in 2019
  • SSC is engaged in all stages of the value chain from freshwater to customer, ensuring full traceability and integrity, and markets premium branded salmon products for more than 25 export markets across the world
  • SSC is the largest independent salmon farming company and the second largest in Scotland by harvest volume, leveraging the unique natural environment of the West Coast and the Hebrides which is woven into the provenance of the award winning and industry recognised premium salmon
  • SSC has been listed on the Oslo Stock Exchange (the Børs) since April 2011

Process 

  • DC Advisory (DC) was appointed in April 2019 by SSC to carry out a strategic review of SSC and evaluate a number of different options
  • As announced in July 2019, the strategic review process attracted several formal, non-binding expressions of interest to purchase part or all of SSC
  • DC leveraged its strong international network and held discussions with a number of parties spanning multiple time-zones

Outcome

  • On 25 September 2019, Bakkafrost signed a binding agreement for the acquisition of Northern Link Ltd’s 68.6% shareholding in SSC and subsequently launched a mandatory offer
  • On 13 January 2020, Bakkafrost initiated a compulsory acquisition of the remaining shares in SSC, having secured 95.7% of the shares
  • Listed on the Børs, Bakkafrost is a Faroese producer and marketer of seafood products and one of the largest integrated salmon farming companies globally
  • The offer represents a 61.4% premium above the share price pre-announcement of the strategic review announced in April 2019
  • Bakkafrost funded the offer via a mix of debt and equity
  • The outcome of this milestone transaction is the creation of one of the leading vertically integrated premium branded salmon players in the world

 

Deal Team