Paine & Partners to Acquire Scanbio

NEW YORK, CHICAGO, SAN FRANCISCO and TRONDHEIM, Norway, July 8, 2011 /PRNewswire/ -- Paine & Partners, LLC ("Paine & Partners"), a global private equity investment firm, today announced that it has entered into a definitive agreement to acquire Scanbio Marine Group ("Scanbio"), a leading producer of fish protein concentrate, fish meal and fish oil from fresh and ensiled fish by-products from Scanbio AS, which is owned by Rolf Eide, Per Arne Eide, Nordic secondary direct fund Verdane Capital IV ("Verdane Capital Advisors") and certain other shareholders.

The transaction is expected to close in the third quarter of 2011.  Financial terms of the transaction were not disclosed.

Scanbio is headquartered in Trondheim, Norway, and its fish protein concentrate, fish meal and fish oil are produced from white and pelagic fish and salmon by-products and are primarily sold into the aquaculture fish feed, animal feed and bio-fuel markets.  Scanbio's business addresses the growing global market demand for protein ingredients for animal feed sourced from the sustainable processing of fish by-products.

Following the Paine & Partners transaction, Carl Eide will assume the position of Chief Executive Officer of Scanbio.  Per Arne Eide will retire as Chief Executive Officer, but will remain involved with the company and will have a seat on the Scanbio Board of Directors.

Atle Sovik, a Partner at Verdane Capital Advisors, said, "We are pleased to have reached this agreement with Paine & Partners, which will provide value to Scanbio's owners and reflects the tremendous efforts of the present management team, employees and owners.  During Verdane Capital Advisors' ownership, the company has developed new products and significantly rationalized operations, leading to average annual EBITDA growth of close to 30 percent over the past seven years.  This would not have been possible without the contributions of Rolf Eide, who founded the company, Per Arne Eide, who has played a significant leadership role at the company for almost twenty years, Bjorn Hyllmark, who has presided over operations, and Carl Eide, who has taken an increasing leadership role over the past several years.  Carl is the right person to lead the organization into its next growth-phase with Paine & Partners."

W. Dexter Paine, III, a Partner at Paine & Partners, said, "We are pleased to team up with Scanbio's management team and employee group, who are known throughout the seafood industry for their innovative and market-leading practices in this area.  Scanbio's fish by-product processing capabilities are representative of the best-in-class and increasingly sustainable operating practices employed in the Norwegian wild catch and salmon aquaculture sectors.  This transaction is aligned with Paine & Partners' focus on the increasing global demand for efficient and sustainable protein sources, seafood processing, and on actively managing companies' global expansion efforts.  Scanbio's production and logistics capabilities help transport and process fish by-products that are not located near an existing fish meal plant and meet an unmet need in the marketplace.  We look forward to working with Carl, Per Arne and the rest of the Scanbio team to help them achieve their new product and expansion plans and to enhance the service and support the company provides to its customers and raw material suppliers, both in and outside of Norway."

Per Arne Eide, Chief Executive Officer of Scanbio, said, "With Paine & Partners we have a strategic investor who will work closely with us to help Scanbio achieve its long-term potential as we continue to develop and expand our business.  Through this transaction, Scanbio will improve its access to capital and will be better positioned to take advantage of significant growth opportunities both in Norway and beyond.  We look forward to working with Paine & Partners as we continue to execute our growth strategies."

Paine & Partners focuses on the food and agribusiness industry globally and has significant experience in the seafood sector.  Paine & Partners currently is invested in Icicle Seafoods, a diversified seafood company, whose operations include the largest United States owned and operated salmon farming business, which produces salmon fillets and value added salmon products in the Pacific Northwest of the United States, as well as a joint venture in Chile producing farm raised coho and trout.  The complex investment opportunities in today's rapidly evolving agribusiness environment play to the strengths of Paine & Partners' differentiated approach.

Paine & Partners was advised by Marko Partners and ABG Sundal Collier advised Scanbio AS.

About Scanbio

Scanbio was established in 1984 in Bjugn, Norway.  The company specializes in the production of fish protein concentrate, fish oil and fishmeal from preserved by-products (silage) and fresh raw materials.  Scanbio has four production plants in Norway and operations in Scotland.

About Paine & Partners, LLC

Paine & Partners provides equity capital for management buyouts, going private transactions, and company expansion and growth programs.  Paine & Partners engages exclusively in friendly transactions developed in cooperation with a company's management, board of directors, and shareholders.  The firm currently makes investments through its $1.2 billion fund, Paine & Partners Capital Fund III, L.P.  For further information, see www.painepartners.com.

About Verdane Capital Advisors

Verdane Capital Advisors has 25 years experience in the venture capital and private equity market as advisor to the Verdane Capital funds.  The funds act as liquidity providers for owners of unlisted assets, primarily by acquiring portfolios of unlisted companies, but Verdane Capital funds also selectively invest directly in medium-sized individual companies.  The committed capital in the funds advised stands at over EUR 500m, with a total of over 100 holdings in four different funds.  Verdane Capital Advisors has 21 professionals in offices in Helsinki, Oslo and Stockholm.  For further information, see www.verdanecapital.com.

Contacts:

For Paine & Partners:
Andy Brimmer / Aaron Palash
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449

SOURCE Paine & Partners, LLC