22 December 2006 - AUSS has today entered into a Letter of Intent with Ferd Private Equity Fund for acquisition of the shares of Epax AS, one of the largest producers of high grade Omega 3 based on fish oil.
Epax AS is the result of a demerger of Pronova in 2005, but has a history which dates back to 1876 as a leading participant in the refining of fish oils. The company today utilizes approx. 5.000 tons of fish oil from South America, which through a unique stripping technology and refining procedure is converted to high grade Omega 3. These products are mainly sold to the nutraceutical (food supplements) and the pharmaceutical markets (Pronova). In 2006 Epax approx. 1,500 tons of end products.
The company has a turnover in 2006 of approx. NOK 230 - 240 mill., with an expected EBITDA margin of approx. 35 per cent. Within the market for high grade Omega 3 the company has a market share on a global basis of approx. 30 per cent. The market for the company's products is in growing significantly, and a growth rate of 20 per cent per annum is expected. From a health perspective it is well documented that Omega 3 has unique properties in prevention and treatment of cardio vascular disease. There is a lot of ongoing research performed in respect of the importance of Omega 3 for treatment of cognitive diseases such as ADHD and Alzheimer. To meet the increasing demand for high grade Omega 3 Epax has decided to increase its production capabilities at its facility in Ålesund.
The acquisition of Epax is an important part of the AUSS strategy to develop further high grade products based on the company's access to large volumes of pelagic resources. AUSS is a leading company in the pelagic business with fishing vessels, fishing licenses and processing facilities in Norway, Chile and Peru. The company produces 50,000 tons of fish oil per annum. Of this volume approx. 30,000 tons comes from South America, which due to its purity and Omega 3 concentration is particularly well suited for production of high grade Omega 3 products.
The acquisition of Epax is made subject to final due diligence which shall be completed in January 2007.