High Liner intends to add assets from Icelandic to consolidate in the North American market. (Photo: High Liner Foods/Icelandic Group/FIS)

High Liner considers acquiring Icelandic Group's assets

CANADA
Tuesday, November 01, 2011, 03:30 (GMT + 9)

Leading North American processor and marketer of seafood High Liner Foods Incorporated has announced that it is engaged in exclusive discussions with Icelandic Group to acquire the latter’s US and Asian processing assets. High Liner aims to become the North American leader in value-added seafood, the company's executive vice-president said.

The terms and conditions of the transaction are still being discussed and are subject to final Board approvals.

Canadian firm High Liner is also still in the process of completing its due diligence review, such that currently there can be no assurance that a final agreement will be reached.

Icelandic is owned by the Enterprise Investment Fund, a pool of capital created by pension funds to help reorganize the economy after the collapse of Iceland’s financial system and the failure of its most important banks in 2008, and its US subsidiary is one of the two biggest companies (including High Liner) in the US value-added seafood market, which is made up of fish and seafood products that come with sauces, glazes and crumbs ready to cook and serve.

"So the combination of the two would certainly create the largest supplier of value-added seafood to U.S. food service distributors and restaurants," said Kelly Nelson, executive vice-president as well as CEO and secretary, The Canadian Press reports.

The US division of Icelandic had sales of USD 263 million in 2010, compared to about USD 285 million for High Liner’s subsidiary also in the US, Namnews reports.

“Our vision is to be the leader in value-added seafood in North America. So this does take us toward our vision,” High Liner stated.

High Liner sells its products under the labels of High Liner, Fisher Boy, Mirabel, Sea Cuisine and Royal Sea, and also offers food service products to restaurants and other institutions. It is also a major supplier of own-label seafood products to food retailers and food service distributors across North America.

By Natalia Real
[email protected]
www.seafood.media

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