Brødr Myhre and Emy Fish are located side by side in the fishing harbour of Måløy on the Norwegian west coast. (Photo: Terje Engoe)
Pelagic giant Norway Pelagic grows bigger
Wednesday, March 17, 2010, 23:10 (GMT + 9)
The world's largest processor of small pelagic, Norway Pelagic ASA has entered into agreements regarding the acquisition of the pelagic businesses of Norwegian processors Emy Fish AS and Brødr Myhre AS. Both companies, located in Måløy on the Norwegian west coast are currently partners in the marketing company Westcoast Pelagics AS in Bergen.
The owners of Emy will receive a payment of EUR 2.4 million and the owners of Myhre will receive EUR 3 million. In Norway Pelagic's opinion, the acquisitions will contribute to strengthening Norway Pelagic's position within the niche markets of herring and herring fillet. It will adjust the capacities throughout the whole value chain, from fishery to production and market, Norway Pelagic ASA stated in information submitted to the Oslo Stock Exchange.
Another important reason for the acquisition is the need to increase fillet production in line with market demand. The Norwegian export of herring fillets is increasing and Norway Pelagic ASA needs to increase production capacity. The acquisition only increases the freezing capacity for mackerel which is needed due to increased quotas.
Emy and Myhre manage two neighbouring pelagic plants which receive and process herring and mackerel from the entire coast of Norway. The plants are separate units, but share in matters related to purchasing, production and sales. Emy has a freezing capacity of approximately 200 tonnes per day and a freezing storage capacity of approximately 1,400 tonnes. Myhre has a freezing capacity of approximately 200 tonnes per day and a freezing storage capacity of approximately 1,800 tonnes. Emy keeps 24 employees, Brødr Myhre, 23 employees.
In 2009 Emy purchased 17,500 tonnes of fish as Myhre purchased 16,000 tonnes of mostly raw fish. Both process herring and mackerel. By comparison, Norway Pelagic purchased raw materials of 480,887 tonnes in 2009. Emy had sales of EUR 9.8 million last year and an operating result of EUR 560,000. Brødr Myhre had sales of EUR 9.7 million and an operating result of EUR 934 000.
Emy and Myhre have a strong position in the European Union (EU) market -- the market represented approximately 60 per cent of the companies' total sales in 2009. The remaining sales are bulk products to Russia/Eastern Europe and mackerel to Japan. The two units are especially known for their customized products of herring filet.
Following the two takeovers, Norway Pelagic will increase its share of total landings in Norway from 36 per cent to approximately 38.5 per cent based on 2009 figures. The takeovers will strengthen Norway Pelagic's position as a leading producer of pelagic fish, and present the opportunity to realize substantial synergies.
By Terje Engoe