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Benchmark raises £19m to fund Chilean JV project
Sheffield-based aquaculture health, nutrition and genetics business Benchmark has raised £19m to fund its new Chilean joint- venture with Empresas Aquachile, the world's sixth largest salmonid producer.
Benchmark acquired a 49% interest in the breeding and genetics joint-venture for $16.25m when it signed an agreement with Empresas AquaChile.
Benchmark anticipates the project will raise EBITDA by £1.81m in the four months to 30 September and roughly £2.4m for the full year.
The firm raised £19m through a placing with existing and new investors to fund the total cash consideration and a $5.4m loan.
Malcolm Pye, chief executive of Benchmark, said, "We are very pleased to announce our Chilean joint venture, which will help us accelerate and de-risk our growth strategy in Chile, the world's second-largest salmon market, where we are underrepresented. Furthermore, the JV is expected to deliver attractive returns and be immediately earnings accretive.
"Combining AquaChile's existing high-quality land-based production and locally adapted genetics, with Benchmark's breeding and genetics capabilities and IP, we believe, will create a world-class operation. The flexibility to use our facilities in Iceland to support the JV gives us a strong competitive advantage in the market," he added.
As of 1650 BST, Benchmark shares had dipped 0.92% to 59.55p.