Milarex

Health and climate action

Company details

Year Aquired

2017

Location

Norway/Poland

Revenue (2020)

2 710 mSEK

Sector

Fish processing

Employees

1663

Investment Themes

Resource Efficiency

Contact

If you want to know more about Milarex please contact Joakim Sundby Johansen at: joakim.johansen@summaequity.com

Milarex at a glance

Milarex operates within the secondary processing part of the value chain, focusing on salmon value-added products. The company was established in 2016 and has in a short time taken a leading position within value-added processing of salmon globally, producing 21m kilos of edible products in 2020. The company is headquartered in Norway with manufacturing and other operations in Poland as well as sales and distribution offices across Germany, Italy, UK, and France. In 2021, Milarex expanded to North America through the acquisition of its exclusive distributor, Ultco. Milarex operates one of the world’s most advanced salmon processing factories, which is well invested and has ample room to cater for growth going forward.

 

Key developments in 2020

Milarex has performed well during 2020, delivering 25% top-line growth supported by strong demand in the retail segment. The company has experienced high growth in markets such as Italy, France, and North America, where Milarex expects continued strong momentum going forward.

Milarex has taken a leadership role in sustainable practices in the salmon processing industry. They have set ambitious targets and have in 2020 launched a fish traceability platform, introduced fully recyclable plastics in its consumer brand Arctic Fish, and launched a sustainable best practice product ‘Pure Green’ under the same brand.

With the recent acquisition of the US distributor Ultco, Milarex is well positioned to further ramp up its efforts in North America, representing a new growth chapter for the company.

Impact Dimensions

The challenges we face

The world population is estimated to reach 8.6 billion people by 2030, implying a demand for 35% more food than what we have available today. On a global basis, more than 1.9 million adults are classified as overweight, representing a need for a healthier diet to combat the disease. Also, of the total GHG emissions that we have today, approximately 14.5% is due to livestock. These challenges represent opportunities for healthy protein producers, such as Milarex, to step up by increasing volume and improving the efficiency of food production.

 

%
of all GHG emissions are from livestock
>x
more GHG emissions from production of beef relative to fish

 

What is the outcome?

By providing a safe, healthy, affordable source of food protein6 and achieving a high ratio of fish-in-food-out (yield), Milarex helps cover the world’s growing nutrition needs (SDG 2, SDG 3). Farm-raised salmon are amongst the healthiest and most nutrient-dense protein sources and is often described as a “Superfood” (Harvard Health Publishing). Its benefits to human health are well-documented (SDG 3).

Replacing other, more carbon-intensive, protein sources, such as livestock, with salmon, reduces GHG emissions. Milarex promotes a sustainable production cycle from sourcing to delivery: The company acts to ensure sustainable consumption and production patterns (SDG 12) by sourcing sustainability-certified salmon (93% of the company’s raw materials in 2020). Milarex is also reducing packaging, has introduced recyclable plastics and will switch to 100% green electricity at its factory during H2 2021.

 

Who are the stakeholders?

Milarex mainly sells its products to consumers through retailers in Germany, Eastern Europe, Italy, UK, France, North America and Australia.

Salmon is a healthy and premium protein; increasing the availability through affordable solutions makes salmon more accessible for more consumers.

 

How big is the effect, and does it last?

Milarex sold around 21 m kilos of edible products in 2020. Going forward, the company expects a continued stable demand for salmon on the back of increasing health and sustainability awareness amongst consumers.

 

If Milarex didn’t exist…

By improving consumer access to healthy, safe, sustainable, and affordable proteins, Milarex has a meaningful impact on our society. Milarex strives to be the benchmark for safe and sustainable salmon processing by its strong food safety culture and sustainability commitments. Through selling processed fish with a longer shelf life, and utilizing the whole fish by selling by-products, Milarex contributes to reducing food waste.

 

Impact risk: what can go wrong?

The quality of Milarex’s products is dependent on the quality of sourced raw materials.

Though regulations of salmon farming are strict, the industry still has challenges in biology, animal welfare and sustainable farming practices. Salmon farmers have always faced challenges head-on by using science-based approaches to continue to improve their operations and average product quality.

Year Aquired

2017

Revenue (2020)

2 710 mSEK

Employees

1663

Investment Themes

Resource Efficiency

Sector

Fish processing

Location

Norway/Poland

Contact

If you want to know more about Milarex please contact Joakim Sundby Johansen at: joakim.johansen@summaequity.com

Website

Video

SDG Alignment
SDG Wheel
SDG 2
SDG 3
SDG 12
SDG 14
KPI reporting
SDG 8

REVENUE (SEKm)

2020
+25%
2 710
2019
2 166
2018
1 963
SDG 12

CONVERSION RATIO

Raw material to edible product
2020
66% (-3 ppt)
2019
69%
2018
68%
SDG 3

TONS OF EDIBLE PRODUCT

2020
+22%
20 769
2019
16 972
2018
15 524
SDG 12

SUSTAINABLE RAW MATERIALS

With certificates from either ACS, Global GAP or MSC
2020
93%
2019
93%
2018
89%

Learn more about Milarex

Summa Equity acquires Milarex

Summa Equity has acquired 75% of Milarex, a value-added processing company in the salmon industry, from the founder, Jerzy Malek. Summa Equity is a thematically-focused private equity investor with Seafood as one of the focus areas within its “Resource Scarcity” theme.   “With a growing global population amidst global climate issues, the world needs healthy…

Read the story

Summa Equity acquires Milarex

Summa Equity has acquired 75% of Milarex, a value-added processing company in the salmon industry, from the founder, Jerzy Malek. Summa Equity is a thematically-focused private equity investor with Seafood as one of the focus areas within its “Resource Scarcity” theme.   “With a growing global population amidst global climate issues, the world needs healthy...
Learn more