December 14, 2015

After three years of pursuing the deal, Benchmark Holding has announced it has agreed to acquire INVE Aquaculture Holding BV from Royal Bank of Scotland and Rabobank for $342 million, according to City AM. INVE Aquaculture is a leading manufacturer of advanced nutrition and health products for the aquaculture industry supplying both fish and shellfish hatcheries and farming operations. Following the acquisition, INVE will be able to serve customers across six continents and throughout 70 countries.

AIM-listed Benchmark, which operates multiple sustainable agricultural and biotechnology companies, will fund approximately $300 million of the purchase price through cash and $42 million will be met through an issuance of Consideration Shares. The cash portion of the deal is being financed through a placing of 215,922,141 new Benchmark shares to both existing and new institutional investors with the goal of raising $281.3 million. The balance of the cash will be funded through debt funding that will be drawn under New Debt Facilities provided by Rabobank and HSBC Bank reports The Fish Site.

“The acquisition of INVE makes Benchmark a global leader in the aquaculture technology market overnight,” said Malcolm Pye, chief executive of Benchmark, according to The Fish Site. “Aquaculture is not only a multi-billion dollar sector but one of the fastest growing in the food industry… Both companies have a history of working collaboratively with partners to develop technologies, and both have a drive to address one of the most pressing issues of our time in developing a healthy, sustainable food chain." 

Because of the scale of the transaction, it is being categorized as a reverse takeover under AIM regulations, meaning that it will need approval of shareholders and the admission of the Enlarged Share Capital to trading on AIM. Shareholder approval is being requested at a General Meeting to be held on December 29, 2015. If approved, admission and dealing in the placing shares will begin the following day, at which time the transaction will also close.