Iceland Seafood International hf. agrees on the principal terms to acquire Icelandic Iberica to form a vertically integrated European Seafood powerhouse
Iceland Seafood International is delighted to announce its intent to purchase Icelandic Iberica with the view of building on the combined groups’ Icelandic heritage.
With the new long term ISI shareholders of FISK Seafood, Jakob Valgeir and Nesfiskur the Group becomes a fully integrated seafood player.
The integrated companies will serve over 3000 customers in more than 45 countries owning 9 production facilities.
April 2018 - Iceland Seafood International hf (ISI) has today agreed heads of terms to acquire Solo Seafood ehf. Which is the sole owner of Icelandic Iberica in Spain. Solo Seafood is a company owned by Sjávarsýn, an investment company in Iceland and Icelandic Iberica’s Managing Director, FISK Seafood, Jakob Valgeir and Nesfiskur. The three mentioned seafood companies hold a significant percentage of the national fishing quotas in Iceland. The combined vendor group will become long-term shareholders of ISI.
Icelandic Iberica is one of the leading seafood companies in the South European market with turnover of €120m and pre-tax profits in excess of €4 million with a projected 2018 outturn of more than €4.7M at pre-tax level. With its extensive product range including cod (bacalao), Argentinian shrimp, cuttlefish and hake and processing capacity in Spain and Argentina, the company has seen strong growth in sales and profit in the last few years.
The acquisition produces in combination a Group with sales of more than €400m delivering in excess of €10m in proforma pre-tax profits for 2018 with material synergy benefits within the combined business to be added. In addition, with direct raw material access resulting from the vertical integration and control of over 40 thousand tonnes of quota the group sales and profit growth are anticipated to benefit significantly in the years to come.
With this acquisition Iceland Seafood International continues its strategy of acquiring strong value-added companies in key markets. On completion of the transaction Iceland Seafood International will operate 9 value added factories in 7 country locations. The ISI shareholding of Fisk Seafood, Jakob Valgeir and Nesfiskur, all major players in the Icelandic seafood industry with combined over 10% of the Icelandic quota and 8 factory operations in Iceland creates a fully integrated seafood group serving over 45 countries and more than 3000 customers around the world.
It is proposed that the consideration will be settled by issuance of 1.047m new shares in ISI. Completion of the proposed transaction is subject to certain conditions, including the conclusion of appropriate due diligence review by the parties, required approval by the shareholders of ISI, definitive documentation of the transaction and competition approval in Spain and/or Iceland (if required).