Bakkafrost P/f

BAKKAFROST: Bakkafrost has acquired 90% of the outstanding shares of Munkebo Seafood A/S

In a transaction closed on 1 January 2022, Bakkafrost has acquired 90% of the

shares in Munkebo Seafood A/S. The deal was jointly made with Michael Karlsen,

who has been the General Manager of Munkebo Seafood for the past many years. The

shares were acquired from Paul Lybech, who has been engaged with Munkebo Seafood

for almost 25 years. Following the transaction, Michael Karlsen holds 10% of the

shares in Munkebo Seafood A/S while Bakkafrost holds 90% of the shares.

Munkebo Seafood A/S was founded in 1974 and has since the formation been engaged

in production of canned fish at the factory in the city of Munkebo in Denmark.

Today, the company operates a modern canning facility and offers a wide range of

products, of which a larger share is based on salmon. Bakkafrost has been one of

the largest suppliers of raw materials for Munkebo Seafood for the past few

years, making Munkebo Seafood a great extension of Bakkafrost's value chain.

With a planned increase in production of salmon over the coming years, from

Bakkafrost's farms in the Faroe Islands and in Scotland, Munkebo Seafood will

have a strengthened raw material base and Bakkafrost will strengthen the ability

to further increase the value derived from its salmon by-products.

Michael Karlsen continues as general manager of Munkebo Seafood, now with a 10%

stake. The operations of Munkebo Seafood will remain unchanged. Munkebo Seafood

has around 40 employees, and the products are currently sold mainly within the

EU market to retail customers. Munkebo Seafood had a gross contribution margin

of DKK 13.7m in 2019, with an EBIT of DKK 2.1m, and in 2020 a gross contribution

margin of DKK 18.5m, with an EBIT DKK 4.8m. There is considerable spare

production capacity for future growth within the current facility.

With the acquisition of Munkebo Seafood, Bakkafrost can now offer a wider range

of products. Bakkafrost offers fresh, frozen and smoked salmon products, and now

canned food is added. Bakkafrost has a global sales network, and Munkebo

Seafood's products will now be offered in a wider market as a supplement to

Bakkafrost's other consumer packaged products.

Bakkafrost is the largest salmon farmer in the Faroe Islands and has extensive

salmon farming in Scotland. The Bakkafrost Group is fully integrated from the

production of fishmeal and salmon feed to genetics, roe and fry, breeding,

processing, processing and sales. Bakkafrost has activities in the Faroe

Islands, Scotland, England, USA and now also in Denmark. Prior to the

acquisition of Munkebo Seafood, Bakkafrost had 1,644 full-time employees.

Contacts:

· Regin Jacobsen, CEO of P/F Bakkafrost: +298 23 50 01 (mobile)

· Høgni Dahl Jakobsen, CFO of P/F Bakkafrost: +298 23 50 60 (mobile)

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