Equity Development - Benchmark (BMK) Disposal of Genetics operation for £260m

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Equity Development

Mike Jeremy

Disposal of Genetics operation for £260m

Benchmark Holdings has announced the disposal of its Genetics operation to Starfish Bidco AS for an enterprise value (EV) of £260m, comprising an initial consideration of £230m in cash plus an additional contingent consideration of up to £30m. The disposal indicates an EV/EBITDA multiple of 17.9x (£14.5m E). The contingent consideration is based on the performance of the core salmon sub-segment (salmon eggs production) of the Genetics Business from 1st October 2024 to 30th September 2027. Conclusion of the disposal is expected in Q1 25, subject to shareholder approval and regulatory clearance.

The disposal enables the reduction of debt and operational streamlining, and the transaction concludes the formal strategic review Group announced on 22nd January 2024.

We will review our outlook for the redefined Group and Fair Value with the publication of Group Q4 and full year FY24 earnings which is expected in early December.

25/11/2024 1 EN

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Benchmark

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United Kingdom

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Analysts

Mike Jeremy

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Disposal of Genetics operation for £260m

FY23 results: consolidation and cash generation

A strong performance in the year-to-date

Steady H1, building for the future

Positive start to important H2 trading period

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