Biotech company to sell its genetics operation in deal worth up to £260m
Sheffield-headquartered aquaculture biotechnology company, Benchmark, has agreed to sell its genetics business area to Novo Holdings A/S for an enterprise value of up to £260m.
The deal to dispose of Benchmark Genetics Ltd, Benchmark Genetics Norway AS and their respective subsidiaries, includes an initial consideration of £230m and additional contingent consideration of up to £30m.
For the last 12 months to 30 June 2024, Benchmark’s Genetics Business generated revenue of £57m and adjusted EBITDA of £14.5m. The net assets of the Genetics Business as of 30 June 2024 amounted to £52.8m.
Trond Williksen, Benchmark CEO, said: “I am pleased to announce this agreement to sell our genetics business to Novo Holdings.
“The transaction will unlock significant value and enable us to return capital to shareholders.
“The disposal will also allow us to focus all our efforts on developing the significant potential of our continuing business areas, Advanced Nutrition and Health. In addition, it will enable us to reduce complexity and streamline the group structure to significantly reduce costs.
“Novo Holdings will be an excellent new owner of the genetics business and is in an ideal position to take the business forward.”
Aleks Engel, partner at Novo Holdings, added: “We are very pleased to announce plans to acquire the Benchmark genetics business from Benchmark Holdings.
“Both animal and plant genetics hold immense potential to transform the global food industry, enabling more efficient and sustainable ways to feed a growing population.
“In particular, advancements in aquaculture genetics, such as those in the salmon industry, present significant opportunities to improve productivity, resilience, and environmental outcomes.”
Novo Holdings is a holding and investment company which is responsible for managing the assets and the wealth of the Novo Nordisk Foundation.
In addition to managing a portfolio of equities, bonds, real estate, infrastructure and private equity assets, Novo Holdings is a life sciences investor. Through its Seed, Venture, Growth, Asia, Planetary Health and Principal Investments teams, it invests in life science companies at all stages of development.
As of the year ending 2023, Novo Holdings had total assets of 149 billion euros (£124bn).
The deal with Benchmark is anticipated to complete during the first quarter of 2025, subject to shareholder approval and regulatory clearances.
Benchmark has also reported today that it expects to release its full year results for the 12-month period ended 30 September 2024 on 12 December 2024.
