We are pleased to announce that Iceland Seafood International (ISI) has today agreed final terms and formally signed the Sales and Purchase Agreement to acquire Solo Seafood ehf, the sole owner of Icelandic Iberica and Ecomsa in Spain and Achernar in Argentina.
Further to the completion of successful due diligence in regards to the respective groups which specifically focused on the positive 2017 performances and 2018 outturn and beyond the parties finalised their legal agreements today which sees the acquisition complete legally subject to certain conditions such as required approval by the shareholders of ISI, banking approvals as well as any competition authorities approval (if required).
Solo Seafood is a company owned by Sjávarsýn, FISK Seafood, Jakob Valgeir and Nesfiskur and Icelandic Iberica‘s Managing Director, Hjörleifur Ásgeirsson. The three mentioned seafood companies (FISK, Jakob Valgeir and Nesfiskur) hold a significant percentage of the national fishing quotas in Iceland. The combined vendor group will become long-term shareholders and suppliers 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 and growth within the combined business still to be added.
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 7 value added factories globally. The ISI shareholding of Fisk Seafood, Jakob Valgeir and Nesfiskur, all major players in the Icelandic seafood industry who collectively represent over 10% of the Icelandic quota, operating 8 processing factories in Iceland creates a fully integrated seafood supply chain serving over 45 countries and more than 3000 customers around the world.
The consideration will be settled by issuance of 1.025m new shares in ISI, which traded at ISK 7.59 as of close of trading at 31 July 2018. The Parties expect completion to occur within the next 4-7 weeks.
The group will in due course consider a main market listing.
Source: Iceland Seafood International hf
