Cargill makes big move into aquafoods with purchase of EWOS
By Joy Wade
By Joy Wade
A second acquisition of an aquaculture company by Cargill was recently announced in Norway. 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 1.35 billion euros. The purchase is subject to regulatory approvals, is expected to close before the end of the calendar year.
“The transaction, which is significant, 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.
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 in Norway and Chile. EWOS produces more than 1.2 million metric tons of salmon feed for the biggest salmon producers.
With the acquisition by Cargill, EWOS has achieved global reach overnight. “Cargill has a strong foothold in materials sourcing. This will be important to our clients” said Einar Wathne, CEO of EWOS, at the announcement. Jason Mann, Managing Director for EWOS Canada, also stated that the purchase gives permanence and stability to the company.
Until recently Cargill has been primarily in terrestrial feeds and this is a major move into aquafeeds. “This is transformative for Cargill” Sarena Lin, President, Cargill Feed and Nutrition, told those attending the announcement. “This allows us to jumpstart and accelerate growth in other species”.
Wathne also sees growth potential saying “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.”
– Erich Leuning