Ovum plans to buy Herde Komposite to secure production capacity

Bergen, Norway-based Ovum, formerly known as Hauge Aqua Solutions, has announced plans to acquire its partner, Herde Kompositt, as a means of securing its production capacity.

Ovum produced the first pilot model of its Egget floating closed-containment system farm in May 2022 at the Herde Kompositt factory in Ølve, Norway. The Egget farm is 44 meters tall and 31 meters wide, and has a capacity of up to one million salmon. Ovum had received five orders at the time, and it said it purchased Herde Kompositt to guarantee it the capacity to fulfill its contracts.

“In order to increase the focus on efficient production of Egget, we have entered into an agreement in principle whereby we are given the right to take over Herde Kompositt AS to ensure production capacity so that we can deliver Egget to customers,” Ovum Founder and CEO Cato Lyngøy said in a press release. “Herde Kompositt AS is the company that built the first pilot edition, E2000, and we have had a close and good collaboration the whole way.”

Herde Kompositt is a major supplier of lifeboats to the commercial marine and cruise industries, and successfully produced the E2000 last year. The smaller model of the Egget has since successfully been used to produce post-smolt, according to Lyngøy.

“We also have actors who are looking at the possibility of using the facility for broodstock production and as an extension of hatchery facilities, and we want to be able to offer that,” Lyngøy said. “Herde therefore has the best prerequisites for becoming a serial producer of the Egget, and this [acquisition] is decisive for their commercialization.”

Ovum is currently raising capital in collaboration with Skandinaviska Enskilda Banken and Norne Securities, with the goal of raising enough capital to commercialize Egget and acquire Herde Kompositt, Lyngøy said. Once sufficient capital has been raised, the recently signed agreement in principle will be exchanged for an agreement finalizing the transaction, which must then be approved by the boards of both companies.

“This is part of an aggressive capital strategy for further growth,” Lyngøy said.

Herde Kompositt Manager Kim Røssland said the company was excited to join forces with Ovum.

“This agreement means that we secure a unique opportunity to be part of an incredibly exciting industrial adventure,” Røssland said. “Not only does this mean safety for the business in Ølve and all the workplaces there, but also a potential to create industrial development with ripple effects for the entire region.”

Photo courtesy of Ovum