24 January 2007 - On 22 December 2006, Austevoll Seafood announced the entering into an LOI to acquire Epax AS. The acquisition is now completed after required conditions are met. The transaction is carried through by acquiring all the shares in Epax Holding AS, owning 100% of the shares in Epax AS, from Ferd Private Equity Fund.
The transaction price is NOK 575 millions based on enterprise value (value of equity and net interest bearing debt).
Epax is a leading producer of high-concentrate Omega-3 oils that are increasingly used as an ingredient in pharmaceutical products, as additives to make food healthier, and as dietary supplements. Omega-3 contains essential poly-unsaturated fatty acids that the human body cannot synthesize, and therefore must be included in the diet, naturally or added. A high number of studies give support to several positive health effects from the inclusion of sufficient Omega-3 in the human diet. Omega-3 is shown to have preventive effects on several life-style related diseases, including cardiovascular diseases and hypertension, as well as for inflammatory reactions (particularly in joints). Sufficient intake of Omega-3 is also widely believed to have a positive effect on brain health, and studies support positive effects on Alzheimer, ADHD, and depressions. Omega-3 is a crucial building block in the brain tissue, and sufficient intake by pregnant women is important for the development of the fetus. Epax has a close cooperation with Pronova Biocare, and both parties agrees that the cooperation will be continued.
Epax utilizes a unique stripping (cleansing) technology that removes possible remains of pollutants that may appear in fish oil. With Austevoll Seafood as owner, Epax can secure its supply of the highest quality of fish oil produced by Austevoll s subsidiaries in Peru and Chile; Austral and FoodCorp.
In 2006 Epax used 5,000 tons of fish oil in its production of 1,500 tons of concentrated Omega-3 oils. This is expected to increase significantly over the next years. Epax expect a 2006 turnover of approximately NOK 230-235 millions and an EBITDA of approximately NOK 80-85 millions.
The acquisition represents a strategically important decision for Austevoll Seafood ASA using their resources to create added value within the fish oil segment. The Company strongly believes that Epax AS will continue its positive development and remain a leading producer of high-concentrate Omega-3 oils.