Transaction Overview
- Represented Pentair plc (NYSE:PNR) in the sale of its subsidiary, Vaki, to Biomark, Inc. (Merck Animal Health), a division of Merck & Co. (NYSE:MRK).
- Vaki is a leader in the manufacturing of fish farming and wild fish conservation monitoring equipment and real-time video monitoring. Its premium offering of equipment, products and technology provides fish counting and size estimation capabilities while also collecting data and analytics for each stage of fish production.
- Biomark – a leading brand operating within Merck Animal Health – is a world leader in aquaculture identification hardware, software, and data services.
Key Observations
- In 2019, Pentair decided to execute a focused shift towards its residential and commercial water operations and subsequently divest all its aquaculture related assets – with Vaki representing one of those assets.
- Merck recognized the immense value-add capabilities of Vaki’s underlying technology and data collection services.
Drivers of Interest
- One of the most recognized brands in the aquaculture industry for over 30 years – supported by an experienced management team.
- A broad product range with widespread global adoption in commercial aquaculture – spanning over 60 countries .
- Cutting edge intellectual property portfolio – with 28 patents – and an extensive R&D pipeline.
- Favorable underlying aquaculture industry dynamics fueled by long-term growth drivers.
- Global strategic operating footprint with locations in all of the world’s key salmon producing regions.
- Attractive financial profile with a meaningful flow of recurring revenue and minimal CapEx requirements.