Benchmark employs more than 800 people worldwide, with a focus on the production of salmon ova, specialty feeds for juvenile salmon, marine fish and shrimp, and health products that include the sea lice treatments Salmosan, Cleantreat and Ectosan.
According to the announcement, the board “believes that the current share price materially understates the aggregate value of Benchmark’s businesses and the company’s long-term prospects, which may be at least in part due to the tight holding and illiquid nature of ordinary shares.”
“As a result, in consultation with the company’s major shareholders, the board has unanimously decided to conduct a formal review of the company’s strategic options… including, but not limited to, a sale of the company as a whole or alternatively the potential sale of one or more individual business units, to determine if there is a bidder or bidders willing to offer a value for the company or its individual business units that the board considers attractive -attractive,” the announcement continued.
The company’s most important shareholders include Ferd, who owns 25.95 percent; JNE Partners, with 22.74 percent; and Kverva Finans, with 22.35 percent.
Benchmark emphasizes that it has not yet entered into discussions with any interested parties and added that any future discussions related to an offer for the company will take place on a confidential basis. Parties interested in making a proposal are advised to contact the financial advisors of Benchmark, Evercore and Rabobank.
A performance improvement
The benchmark emphasizes that the plans to sell follow a three-year period that “delivered significant revenue growth and improvements in profitability and currency conversion”.
Since financial year (FY) 2020, Benchmark’s revenue has grown from £105.4 million to £169 million in FY23 and adjusted EBITDA has increased from £15.5 million to £35.5 million.
“The company is well positioned, with a strong balance sheet and significant headroom to grow within existing markets, as well as multiple potential avenues for expansion,” it claimed.
For the full year ended September 30, 2023, Benchmark delivered 7 percent revenue growth, a 15 percent increase in adjusted EBITDA and improved its operational cash conversion from 35 percent to 58 percent, despite challenging conditions in shrimp sector, one of the company’s main markets.
