Goldman buys wellboat business Frøy for £482m

International investment group Goldman Sachs Asset Management has bought the wellboat and aquaculture support business Frøy, it was announced today.

The news ends months of speculation about this highly successful business, which was part of the NTS group acquired by the salmon farming giant SalMar last year.

However, Frøy did not fit with SalMar’s core business of salmon farming and a sale was always on the cards.

The announcement said the acquisition is at a price of NOK 76.50 (around £5.3) per share, and entails a total consideration for all the shares in Frøy of approximately NOK 6.6 billion (£482m).

It means Goldman Sachs is paying a total of NOK 4.8 billion (£350.8m) for SalMar’s shares in Frøy.

Tavis Cannell, Global Co-Head of Infrastructure within Goldman Sachs Asset Management said: “We are excited to be able to invest in Frøy, as one of the leading companies providing mission-critical transportation and support infrastructure to the aquaculture industry.

“Wellboats and service vessels are vital to enabling best-in-class farming practices and Frøy is at the forefront of driving sustainability. We look forward to partnering with Frøy and its management team, employees and long-standing customers in supporting long-term growth and value creation.”

Frode Arntsen, CEO SalMar

SalMar CEO Frode Arntsen said: “We are pleased to have successfully completed the strategic review in Frøy announced earlier this year.

“Following a constructive process and after reaching a final agreement we believe we have found the best solution, not only for the SalMar group, but for all shareholders in Frøy.

He added: “Following a successful process with many highly reputable interested parties involved, we have found a buyer for the shares in Frøy who we believe is a good fit and will be a strong partner for Frøy in the future.”

Frøy said: “We are pleased that Goldman Sachs Asset Management is becoming a strategic partner to us to further strengthen Frøy as a leading integrated provider of aqua services to fish farmers.

“By leveraging Goldman Sachs’ capital, expertise and network, Frøy will be well positioned to develop the business with the intention to continue the sustainable growth of the Company. The team is excited for the next phase of developing the Frøy group.”

The deal is expected to be completed by the end of the summer.