Cargill Inc., an American multinational corporation, has made its largest acquisition since 2011 by purchasing Norwegian Salmon feed maker EWOS for $1.5 billion, making it one of the top three aqua feed producers in the world.
The agribusiness firm's recent deal is a part of its continued effort to broaden its presence in the aquaculture industry, the company announced Monday.
"This transaction, which is significant and the second aquaculture acquisition Cargill has announced in as many months, is...evidence of our commitment to the growing aquaculture industry," Cargill Chief Executive David MacLennan said, Nasdaq reported.
This is Cargill's second aquaculture undertaking since July, when it declared a $30 million project with Naturisa to establish a shrimp-feed facility in Ecuador.
"The acquisition (of Ewos) ... will make Cargill's animal nutrition business a leading player in the growing salmon feed industry, one of the most advanced and professionally managed segments in global aquaculture," the firm said, according to Reuters.
Cargill has purchased EWOS from Altor Fund III and Bain Capital Europe III, who have held the company since 2013. They will still be investing in the fish-farming division via their ownership of Chile's Nova Austral.
EWOS is responsible for approximately one third of the salmon-feed market, generating more than 1.2 million metric tons of salmon feed annually.
Under the deal, Cargill will acquire seven feed manufacturing facilities: One in Canada, Chile, Scotland, Vietnam and three in Norway, as well as two research development centers in Chile and Norway.
"With access to Cargill's unique animal nutrition competence and resources, we will be better able to serve customers. This is a natural next step," Ewos Chief Executive Einar Wathne stated.
Cargill's latest deal is its largest since 2011, when it acquired animal-feed group Provimi, Bloomberg Business has learned.
Sarena Lin, president of Cargill's feed and nutrition business, said farmed fish and shrimp are one way to meet global demand for protein that is expected to grow by 70 percent by 2050.
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