Nekkar — M&A Activity 2023

Aug 30, 2023

Nekkar partners with BEWI Invest through joint investment in the aquaculture industry supplier FiiZK

Nekkar partners with BEWI Invest through joint investment in the aquaculture industry supplier FiiZK

30.8.2023 07:00:03 CEST | Nekkar ASA | Inside information

30 August 2023 - Industrial technology group Nekkar ASA (Nekkar, OSE: NKR)

partners with BEWI Invest AS (BEWI Invest) through a joint investment in the

aquaculture industry supplier FiiZK. FiiZK is the leading provider of closed

cage systems for fish farming. The company also provides software tools for

optimising fish farming planning, operations, and analysis.

"This milestone marks a significant step forward in advancing Nekkar's

investments in the aquaculture industry, including our Starfish closed fish cage

solution. We are delighted to team up with BEWI Invest to jointly develop and

position FiiZK for the expected future growth in closed fish cage solutions,"

says Ole Falk Hansen, CEO of Nekkar.

Nekkar is an industrial technology group offering impact technologies combined

with high-end software and automation solutions. The foundation of Nekkar's

business is world-class mechanical engineering, electrification, automation, and

digitalisation. Nekkar applies this competence to develop disruptive

technologies that offer high sustainability impact solutions, such as the

Starfish closed fish cage.

ABOUT FIIZK

FiiZK is a leading provider of sustainable semi-closed and closed cage solutions

for post smolt production, broodstock fish and harvesting. FiiZK has completed

more than 20 successful installations of closed cage facilities at sea.

Additionally, FiiZK delivers an impressive set of software tools for optimizing

fish farming planning, operations, and analysis, thereby contributing towards

enhancing the efficiency of the value chain for its clients, which include

several of the largest salmon farmers globally.

FiiZK is headquartered in Trondheim, Norway, with an international office in

Scotland, UK. The company employs approximately 100 people and delivered revenue

of approximately NOK 337 million in 2022.

Following a restructuring process, the new FiiZK group will going forward

consist of three business units:

1. Closed cage solutions for farming of fish

2. Technical textiles including tarpaulin-based products for fisheries,

industry, agriculture and logistics. Aquaculture products include lice

skirts, treatment tarps, disinfectant tarps, landing nets and freshwater

depots

3. Digital, which incorporates a suite of software products for aquaculture

planning, optimisation, and analysis with the products Horizon, Omnia and

CTRL

TRANSACTION TERMS

Nekkar invests a total of NOK 50 million for a 39 per cent ownership share in

FiiZK. The consideration consists of NOK 25 million in cash and a NOK 25 million

payment in kind contribution through its cutting-edge Starfish technology.

Starfish is a fully automated, closed fish cage solution, digitally and remotely

managed and designed to dramatically reduce fish farmers' OPEX.

Furthermore, Bewi Invest will invest NOK 25 million in cash and other existing

minority shareholders will invest NOK 10 million in cash in the newly

established FiiZK group. Following completion of the transactions, Nekkar 39%

and BEWI Invest 41% will be the two largest shareholders of FiiZK.

"The integration of FiiZK's established market position and Nekkar's Starfish

technology strengthens the company's position as the market leading provider of

closed cage solutions and aquaculture software," says Ole Falk Hansen.

Closing of the transaction is subject to customary conditions and expected to be

completed within October 2023.

BEWI AND NEKKAR COLLABORATION

As large shareholders, each with a solid history of industrial value creation,

BEWI Invest and Nekkar will bring their complementary expertise. BEWI Invest,

majority owned by the Bekken family, has more than 40 years of industrial

experience from developing leading industrial companies. While Nekkar,

controlled by the Skeie family, has a strong legacy delivering advanced offshore

technology and automation software to ocean-based industries.

"We are very pleased to partner with Nekkar to further develop FiiZk and

position the company for capturing the opportunities we see within the growing

aquaculture industry. Nekkar's expertise and experience complement us very

well," says Bjørnar André Ulstein, CEO at BEWI Invest.

Both BEWI Invest and Nekkar will be active in developing FiiZK.

"The timing of this investment is ideal as new technological solutions are

needed to overcome the regulatory and environmental challenges the industry is

facing. We are confident FiiZK will generate a monumental leap toward a more

profitable and sustainable future for fish farmers. We are also delighted that

Starfish finds its industrial home in specialist aquaculture company," concludes

Ole Falk Hansen.

ABOUT NEKKAR ASA

Nekkar (OSE: NKR) is an industrial technology group offering impact technologies

combined with high-end software solutions. The group combines 50 years' heritage

from the world's number one shiplift company, Syncrolift, with new investments

into sustainable, digitalised technology businesses that aim to unlock growth

within ocean-based industries such as offshore energy, renewables and

aquaculture.

ABOUT BEWI INVEST AS

BEWI Invest is a Norwegian industrial owner with a high-quality portfolio mainly

comprised of companies within industry, real estate, and seafood. The company

has a long-term perspective and has demonstrated a proven track record of value

creation and growth. Through active and responsible ownership, BEWI Invest has

been instrumental in the growth and value creation in its portfolio companies

with sustainability at the core. BEWI Invest is the majority owner of the listed

packaging and insulations company BEWI ASA (OSE: BEWI) and the largest owner of

the listed real estate group KMC Properties ASA (OSE: KMCP).

DISCLOSURE REGULATION

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act.

CONTACTS

* Ole Falk Hansen, CEO, +47 988 14 184, ir@nekkar.com

ABOUT NEKKAR ASA

Nekkar (OSE: NKR) is an industrial technology group offering impact technologies

combined with high-end software solutions. The group combines 50 years' heritage

from the world's number one shiplift company, Syncrolift, with new investments

into sustainable, digitalised technology businesses that aim to unlock growth

within ocean-based industries such as offshore energy, renewables and

aquaculture.