Verdane to sell shareholding in Scanbio to Paine & Partners

8 Jul, 2011

Verdane Capital IV (Verdane) has agreed to the sale of Scanbio Marine Group (Scanbio), a leading producer of fish protein concentrate and fish oil, to Paine & Partners, LLC (Paine & Partners), a global private equity investment firm. The transaction is expected to close in the third quarter of 2011.

Based in Trondheim, Norway, Scanbio produces fish protein concentrate, fish oil and fish meal from fish by-products. The firm’s products are mainly sold into the fish feed, animal feed and bio-fuel markets. No fish is caught specifically to supply the factories; hence the business serves the growing global market demand for sustainably sourced protein for fish and animal feed.

Verdane has together with management and other owners helped the firm develop new products with higher protein content. Operations have been rationalised and prices on all production components, such as electricity and machinery, have been lowered. This has lead to average annual EBITDA growth of nearly 30% during the past seven years. During the same period, revenues have grown from Nkr 106m to Nkr 330m (FY 2010).

Commenting on the transaction, Atle Søvik, Partner at Verdane Capital Advisors, said, “We are pleased to have reached this agreement with Paine & Partners, which will provide value to Scanbio’s owners and reflects the tremendous efforts of the present management team, employees and owners over the past 21 years. The transaction shows how valuable this type of niche expertise is, particularly in an international setting.”

W. Dexter Paine, III, Partner at Paine & Partners, further said, “We are pleased to team up with Scanbio’s management team and employee group, who are known throughout the seafood industry for their innovative and market-leading practices in this area. Scanbio’s fish by-product processing capabilities are representative of the best-in-class and increasingly sustainable operating practices employed in the Norwegian wild catch and salmon aquaculture sectors.”

Per Arne Eide, Chief Executive Officer of Scanbio, commented, “With Paine & Partners we have a strategic investor who will work closely with us to help Scanbio achieve its long-term potential as we continue to develop and expand our business.”

Following the Paine & Partners transaction, Carl Eide will assume the position of Chief Executive Officer of Scanbio. Per Arne Eide will retire as Chief Executive Officer, but will remain involved with the company and will have a seat on the Scanbio Board of Directors.

Financial terms of the transaction were not disclosed.
 
For further information, please contact:
Frida Einarson, fe@verdanecapital.com or +46 702 44 20 83

 About Scanbio
Scanbio was established in 1984 in Bjugn, Norway.  The company specializes in the production of fish protein concentrate, fish oil and fishmeal from preserved by-products (silage) and fresh raw materials. Scanbio has four production plants in Norway and operations in Scotland. http://www.scanbio.co.uk/
 
About Verdane Capital Advisors
Verdane Capital Advisors has 25 years experience in the venture capital and private equity market as advisor to the Verdane Capital funds. The funds act as liquidity providers for owners of unlisted assets, primarily by acquiring portfolios of unlisted companies, but Verdane Capital funds also selectively invest directly in medium-sized individual companies. The committed capital in the funds advised stands at over €500m, with a total of over 100 holdings in four different funds. Verdane Capital Advisors has 21 professionals in offices in Helsinki, Oslo and Stockholm. For further information, see www.verdanecapital.com
 
About Paine & Partners, LLC
Paine & Partners provides equity capital for management buyouts, going private transactions, and company expansion and growth programs. Paine & Partners engages exclusively in friendly transactions developed in cooperation with a company's management, board of directors, and shareholders. The firm currently makes investments through its $1.2 billion fund, Paine & Partners Capital Fund III, L. P. For further information, see www.painepartners.com.