BLUEFRONT EQUITY ENTERS REDOX AS
“We have monitored Redox for several years. It is a highly innovative company that develops technology that improves fish welfare and biosecurity in the aquaculture industry. It is a perfect match for our sustainability profile,” says Kjetil Haga, partner at Bluefront Equity.
Bluefront Equity’s first fund primarily aims to invest in supplier companies that ensure increased traceability, better fish health and welfare, enhanced quality of the end-product, improved hygiene, and contributing towards digitising the seafood industry.
The investment is a combination of purchase of shares and a subsequent share issue. Following completion of the transactions, Bluefront Equity is the majority owner with 51.8% ownership share. Today’s owners Sirø Invest AS, Norsk Mineral AS and Helge Bullgård continue as shareholders with 29.3%, 15% and 3.9% ownership, respectively. The parties have agreed to not disclose the agreement’s financial details.
Bluefront Equity’s industry advisers and investors, former Mowi CEO Alf-Helge Aarskog and Nova Sea-owner Aino Olaisen, become new board members of Redox together with Kjetil Haga, partner at Bluefront Equity.
Fish welfare and bio security
Redox AS was founded in 2004 and has in the past decade delivered an annual average revenue growth of 20 percent. In 2020, the company had revenues of approximately NOK 146 million with an operating profit of NOK 16 million. Redox’s headquarter is based in Averøy municipality in Møre og Romsdal county in Norway. The company also has an international office in Kolkata, India. Redox is headed by founder Helge Bullgård, while the company’s head of business development, Sigmund Røeggen, was the largest shareholder prior to Bluefront Equity’s investment.
Redox is an ozone and oxygen specialist that develops environmentally friendly technologies which improve fish welfare and biosecurity for the aquaculture industry, plus reduces chemical discharges.
“Redox has traditionally worked extensively with wellboats, but we have in recent years started to apply our technologies onshore, including for land-based fish farming, fisheries, agriculture and food processing. Together with Bluefront Equity we will be prepared to take part in the strong aquaculture industry growth wave, both in Norway and internationally. We will invest significantly in product development and further strengthen our workforce. We will offer more cost-effective technologies and products, with fish welfare and biosecurity at the centre of everything we do,” says Sigmund Røeggen, chairman and main shareholder of Redox.
Røeggen praises the company’s employees who have played a vital role in its success: “If anyone wants to experience what a 24/7 attitude is really like, please come visit Redox.”
Redox has developed an ozone system that ensures a bacteria-free production facility. Ozone is 50 percent more powerful than chlorine, but both safer and more environmentally friendly compared to chlorine and other antimicrobial agents. Ozone is therefore particularly well suited for disinfection use in the food and marine industries. Within the aquaculture industry, the ozone systems are utilised to disinfect several parts of the value chain, including land-based facilities’ water intake and equipment between different batches of fish.
Following disinfection of water and equipment, the ozone is automatically converted to oxygen and thus improves oxygen content in the water, which is positive for the environment and fish welfare. Redox has also developed a technology that supplies microbubble oxygen to further improve both water quality and fish welfare in the aquaculture industry.
Manages close to half a billion
The investment in Redox Kjetil Haga and Simen Landmark’s first investment through Bluefront Equity. Bluefront Equity is the only independent Nordic investor that focuses solely on the seafood industry. The fund invests in small and medium sized suppliers that make the future seafood industry more sustainable.
The fund’s total assets are now close to half a billion Norwegian kroner (NOK). This is expected to further increase towards the summer.
“The interest in the fund is very high. We have ongoing dialogue with additional large investors who are keen to invest in a more financially and environmentally sustainable seafood industry, says Simen Landmark, partner at Bluefront Equity.
Photo credit: Redox AS