Nekkar — M&A Activity 2024

Aug 6, 2024

Nekkar ASA: FiiZK divests lice skirt business

Nekkar ASA: FiiZK divests lice skirt business

6.8.2024 10:00:01 CEST | Nekkar ASA | Non-regulatory press releases

06 August 2024 - As a continuation of its previously announced streamlining

process, the FiiZK group has entered into an agreement to divest FiiZK

Protection AS' lice skirt production business to Icelandic fishing industry

supplier Hampidjan Group.

The sale is part of a streamlining of FiiZK, which going forward will focus on

unconventional farming methods including closed and semi-closed cages for fish

farming. The first step of this strategy was announced on 26 June 2024, when

FiiZK announced the sale of FiiZK Digital AS to seafood investor Bluefront.

FiiZK Group's largest shareholders are Nekkar ASA (39%) and BEWI Invest (41%).

"The aquaculture industry is increasingly recognising the biological and

commercial benefits that closed and semi-closed cages bring. To date, FiiZK's

cage products have successfully completed more than 70 production cycles,

demonstrating strong fish growth and no problems with lice and escapes. We aim

to build on this success," says Jan Erik Kvingedal, managing director of FiiZK.

Sale of lice skirt business

Under the agreement, FiiZK Group divests FiiZK Protection AS' lice skirt

business, which is located at Valsneset in Ørland municipality, northwest of

Trondheim, Norway, to Icelandic company Hampidjan Group. The lice skirt business

delivered revenue of approximately NOK 100 million in 2023.

FiiZK Protection AS is a leader in the production and sale of salmon lice skirts

for the aquaculture sector and has about 80 percent market share in Norway.

Following the sale, the number of employees in the company will be around 30,

located primarily at Valsneset.

The parties have agreed to not disclose the financial details of the

transaction, which is expected to be completed in September 2024. FiiZK

Protection AS will be renamed following the completion of the transaction.

Keeping Mjåtveit facility

FiiZK Protection AS' facility at Mjåtveit, outside Bergen, West Norway, is not

part of the transaction. This business, which manufactures technical textiles

including canvas for closed and semi-closed fish cages, will be transferred to

the FiiZK group company FiiZK Industries AS prior to execution of the share

purchase.

Approximately 20 people are employed at the Mjåtveit facility.

"Our facility at Mjåtveit plays a key role in manufacturing materials for our

semi-closed and closed fish cages. Keeping this business therefore supports

FiiZK's strategic direction," says Ole Falk Hansen, chairman of FiiZK and CEO of

Nekkar ASA.

Going forward, FiiZK will focus on the sale of closed and semi-closed fish

cages, with associated software, maintenance and services. A key part of this

effort is FiiZK's new closed cage called "Protectus", which is based on the best

solutions from the company's three previous models, "Certus", "Ecomerden" and

"Starfish". In addition, the company has recently launched "FiiZK FlekZii Cage»,

which is a semi-closed cage solution that reduces lice infestation.

(ENDS)

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.