British-Norwegian aquaculture biotechnology firm Benchmark Holdings said it sold its genetics business, which chiefly helps fish farmers produce more salmon, to a unit of Danish investment company Novo Holdings A/S for £230 million plus a possible £30 million if it hits certain targets. 

The sale concludes a strategic review by the company, listed on both the London and Oslo stock exchanges, that considered a sale of all or parts of the group. Its shares are down more than 40% over the past three years.

The company, which has a major sales office in Sheffield, said the sale will allow it to focus on its Advanced Nutrition and Health businesses and creates an opportunity to reduce complexity and streamline the current group structure to significantly reduce costs.

It said net proceeds from the disposal will be used to return capital to shareholders and to reduce the company’s leverage, by repaying its unsecured floating rate listed green bond and drawn amounts under the group’s revolving credit facility provided by DNB Bank ASA in full. 

Trond Williksen, Benchmark CEO, said: “The Transaction will unlock significant value and enable us to return capital to shareholders. “The Disposal will also allow us to focus all our efforts on developing the significant potential of our continuing business areas, Advanced Nutrition and Health.  In addition, it will enable us to reduce complexity and streamline the Group structure to significantly reduce costs.”

Aleks Engel, Partner at Novo Holdings, said: “We are very pleased to announce plans to acquire the Benchmark genetics business from Benchmark Holdings. Both animal and plant genetics hold immense potential to transform the global food industry, enabling more efficient and sustainable ways to feed a growing population. In particular, advancements in aquaculture genetics, such as those in the salmon industry, present significant opportunities to improve productivity, resilience, and environmental outcomes.”