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Thomas Farstad Aker Seafoods new president and CEO (Photo: Aker Seafoods/FIS)
Aker Seafoods is Focusing in Two Companies
(NORWAY, 7/4/2010)
Thomas Farstad has been appointed as the new president and CEO of Aker Seafoods ASA (Public, OSL:AKS), and the board has resolved to continue developing the seafood group through two independent businesses.
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| Frank O Reite |
“We’re very satisfied with the appointment Mr Farstad as chief executive,” says Aker Seafoods chair Frank O Reite. “He has detailed knowledge of the seafood industry and leadership experience from listed companies. These are important qualifications for the job of improving our profitability.”
Mr Farstad is currently the post of acting chief executive in Marine Harvest, and will be joining Aker Seafoods during the course of the year.
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| Liv Monica Stubholt |
“Liv Monica Stubholt has done an impressive job as our acting chief executive,” says Mr Reite. “She and her management team, together with our union representatives, have conducted a thorough process to identify improvement areas. The outcome is that the group will be developed as two independent companies.”
Processing and sales will be demerged into a separate company under the name Norway Seafoods AS. At its creation, this company will be wholly owned by Aker Seafoods. Norway Seafoods will be under the leadership of Thomas Farstad.
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| Trond Williksen |
Harvesting will remain a separate business area in Aker Seafoods under the leadership of Trond Williksen, currently executive vice president for harvesting in the group. This business comprises 12 trawlers in Norway and two in Spain, with a total of approximately 400 employees. Operating revenues are about NOK 600 million per year. The restructuring does not impact delivery obligations for trawlers and other licensing terms.
Agreements between the two companies will be entered into at market terms and employee rights will be maintained in each of the companies. Furthermore, the Norway Seafoods workforce will have boardroom representation in Aker Seafoods.
Focusing the business through two companies does not in itself generate any need for additional financing; however Norway Seafoods will be financed on a stand alone basis.
The restructuring will ensure that Norway Seafoods is established as market-oriented processing business which provides the basis to participate in the necessary restructuring of the Norwegian seafood processing industry. Strategic collaboration with new partners and investors will be considered and a stock market listing could be relevant for Norway Seafoods in the longer term.
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Norway Seafoods will be responsible for operation of 11 factories and fish receiving facilities in Norway, three facilities in Denmark and two in France. The company will have about 1 200 employees in all, including 670 in Norway, and operating revenues in excess of NOK 2 billion per annum.
Transactions related to the creation of Norway Seafoods are being implemented at fair value, which is expected to correspond to book values at group level. Employees and assets related to the harvesting business will be retained in the harvesting company Aker Seafoods. That applies to trawlers, premises with an associated activity obligation, and other items significant for maintaining harvesting rights.
Employees, production equipment and all assets associated with onshore fish processing and sales, including premises without significance for maintaining harvesting rights, will be transferred to Norway Seafoods. Premises with an activity obligation will be leased from the harvesting company.
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| The restructuring will ensure that Norway Seafoods is established as market-oriented processing business |
“This restructuring will place us in a better position to strengthen our fresh-fish strategy, and thereby increase deliveries from the coastal fishing fleet to the factories,” says acting chief executive Stubholt. “I also expect the new company to increase its share of high-margin products”.
About Aker Seafoods ASA
Aker Seafoods ASA is a leading international seafood group with the focus on harvesting, processing and sale of whitefish. Its head office is in Oslo, and it has operations in Norway, Denmark, Sweden, France, the UK and Spain.
Aker Seafoods achieved operating revenues of NOK 2 685 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of NOK 192 million in 2009. With 1 022 personnel in Norway, the group is one of the largest employers in the Norwegian fishing industry. It employs a total of 1 584 people in Scandinavia and the rest of Europe.
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Aker Seafoods delivers fresh fish products 364 days of the year, and ranks as Europe’s largest whitefish harvesting group. Its integrated value chain creates a close link between harvesting and processing. Harvesting by the group’s own vessels provides about half of the raw material consumed at its Norwegian processing plants.
About Thomas Farstad
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| Thomas H Farstad |
Thomas H Farstad (39) has been acting chief executive of Marine Harvest ASA since March, and a member of its corporate management team since 2006. He was initially responsible for strategy and business development in 2007-08, and then held operational responsibility for Marine Harvest’s facilities in Canada, Scotland, Ireland and Asia, as well as some development plants in Norway.
Mr Farstad worked in 2003-06 for Fjord Seafood ASA, which became part of Marine Harvest in 2006. He was chief executive of Fjord Seafood Norway AS (2003-06), and before that vice president for strategy and business development.
Earlier appointments include service as a consultant with McKinsey & Company (1999-2004) and as a project engineer with Aker Maritime (1997-1999). Mr Farstad holds an MBA from Insead in France and an MSc from the Massachusetts Institute of Technology (MIT) in the United States.
He is due to take over as president and CEO of Aker Seafoods ASA during 2010, at an annual salary of NOK 2.25 million.
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Margaret Stacey
Editor Companies and Products
Information of the company:
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Address:
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Fjordalléen 16 - Postboks 1301
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City:
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Oslo
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State/ZIP:
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(0250)
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Country:
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Norway
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Phone:
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+47 24 13 01 60
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Fax:
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+47 24 130 161
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firmapost@akersea.com
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