Iceland Seafood International has agreed terms to acquire Solo Seafood, which owns Spain-based Icelandic Iberica, in a deal that will create an enterprise with EUR400m (US$481.2m) in sales.
Solo Seafood is currently owned by investment firm Sjávarsýn, along with Fisk Seafood, Jakob Valgeir and Nesfiskur. The latter three companies hold a ”significant” 10% of the national fishing quotas in Iceland and will become shareholders in Iceland Seafood.
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On completion of the transaction, Iceland Seafood (ISI) will operate nine factories spread across seven countries. The combined company will serve 45 countries with more than 3,000 customers around the world.
The deal is subject to a number of conditions: a due diligence review by all parties, approval by shareholders of ISI, and approval by competition regulators in Spain or Iceland, or both.
ISI is a listed processor of frozen, salted and fresh seafood located in Reykjavik, with processing facilities in Spain, Ireland and the UK. The company generates annual sales of around EUR300m.
Chairman Benedikt Sveinsson said the deal with provide a platform for ISI to further penetrate the Spanish and European markets.
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By GlobalDataChief executive Helgi Anton Eiriksson added: “This will be a transformational step for Iceland Seafood International as we will welcome three of Iceland’s major seafood players into the shareholding group of ISI, creating an integrated supply chain through to the end customer.
”At the same time, we continue our strategy of investing in strong, well positioned, value-added businesses, creating synergies and new business opportunities at ISI across Europe and globally.”
In March, ISI said it was buying a majority 67% stake in Ireland-based peer Oceanpath Seafoods for as much as EUR13m, with management at the latter firm retaining a 33% holding. Icelandic Iberica is a leading seafood company in the south European market with a turnover of EUR120m. Its product range includes cod, Argentinian shrimp, cuttlefish and hake.
Solo Seafood’s chairman Bjarni Armannsson commented: “With both Icelandic Iberica and ISI having strong roots in the Icelandic seafood industry, we are pleased with this step in joining our two groups to leverage our sourcing, distribution and production capabilities to the benefit our customers and suppliers.”
