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Henry Demone, president and CEO of High Liner. (Photo: High Liner Foods Incorporated/Icelandic/FIS)
High Liner offers to buy Icelandic Group
(CANADA, 1/6/2011)
Leading North American seafood processor and marketer High Liner Foods Incorporated has announced its unsolicited offer to purchase the Icelandic Group for EUR 340 million.
"Icelandic Group is a leading seafood supplier in Europe and one of the largest suppliers of value-added seafood to the US food service market under the well-respected Icelandic brand," said Henry Demone, president and CEO of High Liner. "The addition of the Icelandic line of products to our existing line of food service products would make High Liner the leader in the sale of valued-added seafood to the US food service market and an even stronger partner for our customers."
Based out of Reykjavík, Iceland, the Group is made up of a global network of independent companies, each working in its own market producing and selling seafood products. In the US, UK, France and Germany, it runs processing plants for value-added products and sales and marketing companies selling various seafood products.
Other sales and marketing firms are found in Spain and Japan. The Group also engages companies responsible for procurement in Iceland, Norway and China.
Further, Icelandic Group is involved in primary processing of raw material through many processing facilities in Iceland, China and Thailand.
Although the Group’s assets are for sale, the current owners are negotiating with a single European private equity firm and said they will not negotiate with other parties until late this week. It is uncertain whether High Liner's offer will be considered or if a deal can be concluded.
High Liner's offer assumes EUR 170 million in debt and EUR 170 million for the current equity interest. High Liner would incorporate the Group's US operation into its US division and look at strategic options for the remaining assets.
If the Icelandic Brand and the Group's trading divisions need to be excluded from the deal, High Liner's proposal would entail entering into a long-term agreement so as to continue to use the Icelandic brand for value-added products. High Liner also is willing to provide sales and marketing support to Icelandic producers selling under the Icelandic brand if they seek it.
If successfully completed, High Liner expects the acquisition to be accretive to earnings per share before one-time costs and would finance the acquisition via a mix of its existing asset-based working capital facility, new long-term debt and equity.
High Liner is being advised by Reykjavik-based KE-Partners.
In December, High Liner signed an agreement to buy Viking Seafoods Inc for USD 31.5 million to help enlarge its presence in the US. Viking was one of the biggest independently owned seafood firms in the country.
High Liner is a processor and marketer of prepared, value-added frozen seafood based out of Nova Scotia. Its branded products are sold throughout the US, Canada and Mexico under the High Liner®, Fisher Boy®, Mirabel® and Sea Cuisine™ labels in most grocery and club stores.
Related article:
- High Liner Foods announces acquisition of Viking Seafoods
By Natalia Real
[email protected]
www.seafood.media
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Address:
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100 Battery Point - Box 910
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Lunenburg
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NS (B0J 2C0 )
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Canada
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+1 902 634 8811
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+1 902 634 4785
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[email protected]
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