The deal, agreed with owners Altor Fund III and Bain Capital Europe III, will make Cargill a global leader in salmon and shrimp nutrition.
Subject to regulatory approvals, the acquisition is expected to be finalised before the end of the year.
Cargill president and ceo David MacLennan said the investment revealed the growing significance of aquaculture.
‘Commitment to aquaculture industry’
“This transaction, which is significant and the second aquaculture acquisition Cargill has announced in as many months, is a strategic investment in our long-term growth and evidence of our commitment to the growing aquaculture industry,” said MacLennan.
Last month Cargill revealed a £19.14M ($30M) joint venture with shrimp firm Naturisa to build a feed plant in Ecuador.
The firm’s latest acquisition gives Cargill entry into the salmon market and will make Cargill’s animal nutrition business a leading player in the growing salmon feed industry.
As part of the deal, Cargill will acquire seven feed manufacturing facilities; three in Norway, and one each in Chile, Canada, Scotland and Vietnam, and two research and development centres in Norway and Chile.
EWOS manufactures more than 1.2Mt of salmon feed for the world’s biggest salmon producers.
‘EWOS is a winning company’
President of Cargill’s feed and nutrition business Sarena Lin underlined the strategic value of the deal. “EWOS is a winning company,” said Lin. “Adding its industry-leading talent and capabilities as well as its thought leadership in sustainable business practices will be transformational for our aquaculture nutrition business.
“We are looking forward to welcoming 1,000 highly talented and passionate EWOS employees to the Cargill Animal Nutrition team and strengthening our R&D capabilities and accelerating the pace of innovation to drive strategic long-term growth for Cargill’s animal nutrition business.”
Cargill’s fish pledge
“With the need for protein expected to grow by 70% worldwide by 2050, farmed fish and shrimp offers one solution to meeting this demand, and Cargill intends to play a major role in this growing and important market.”
- Sarena Lin, Cargill
The deal was said to create a new, world-class aqua feed supply capability that will support the growth potential for fish and seafood consumption and create new opportunities for customers and employees alike.
Cargill already operates aquaculture facilities in Mexico, Central America, China, the US, Southeast Asia, India, and Ecuador, to which EWOS is expected to contribute complementary expertise and leadership.
“With the need for protein expected to grow by 70% worldwide by 2050, farmed fish and shrimp offers one solution to meeting this demand, and Cargill intends to play a major role in this growing and important market,” Lin said.
Meanwhile, researchers at Glasgow University have hatched a plan to protect aquaculture businesses against sea lice, which costs the global fish farming industry hundreds of millions of pounds each year.
As resistance to chemical treatments and consumer opposition to their use rises, the researchers have devised new plans to breed resistant fish and developed a mathematical model to predict the effectiveness of resistance.
Details of the research are published in the Royal Society journal Interface.
Cargill’s aquaculture facilities
- Before deal: Mexico, Central America, China, the US, Southeast Asia, India and Ecuador
- After deal: seven feed manufacturing facilities; three in Norway, and one each in Chile, Canada, Scotland and Vietnam
- Two research and development centres in Norway and Chile