Icelandic Group plc. (the „Group“) has sold its operations in
the United States and the related procurement and manufacturing
businesses. The buyer is the Canadian seafood company High Liner Foods
(TSX:HLF). The transaction is valued at approximately US$ 230 million,
the equivalent of ISK 26.9 billion. 
Icelandic Group will continue to own the Icelandic Seafood™ brand.
High Liner will have the right to use the brand in the United States,
Canada and Mexico for the next seven years. In addition, High Liner
Foods has entered into a long-term distribution agreement with Icelandic
Group on the purchase of Icelandic marine products to ensure that
producers in Iceland will continue to have the same access to the U.S.
market as they do today.
The sale includes Icelandic USA’s processing plant in Newport News,
Virginia, as well as related procurement and manufacturing businesses.
Icelandic Group’s U.S. and Asian operations had sales of US$ 268 million
in the last twelve months ending September 2011 and earnings before
interest, taxes, depreciation and amortization (Adjusted EBITDA) of US$
24.8 million. The purchase price consideration will be paid in full in
cash and will partly be used to reduce debts associated with the sold
assets.
Finnbogi Jónsson, CEO of the Enterprise Investment Fund:
“The sale of the Icelandic Group´s operations in the United States and
related businesses is the final step of a strategic process that the
owners and managers of Icelandic Group have been working on all this
year. Our goal has been to strengthen the financial position of the
Group and sell manufacturing units that hold little strategic value for
the Icelandic fishing industry. This sale together with the sale of
assets in Germany and France earlier this year, means that the Group has
now divested itself of assets in the total amount of approximately ISK
41 billion this year, out of which ISK 21 billion have been paid for by
assumption of debts. We will use the remaining cash to lower the Group´s
debts further and to return part of the initial investment to the
pension funds and other owners of the Enterprise Investment Fund.”
Herdís Fjeldsted, Chairman of the Board of Icelandic Group:
“The sale of the U.S. operations is an important step for Icelandic
Group and in line with the strategy presented by new owners earlier this
year. We have been focused on streamlining the Group´s operations,
reducing debt, increasing profitability and minimizing risk in the
operations. Services to Icelandic producers are an important element of
our operations, and our distribution agreement with High Liner will
ensure continued access for Icelandic producers to the North American
markets. No less importantly, the agreement ensures that all marine
products sold under the Icelandic Seafood™ brand will continue to meet
the strict quality standards as before, a core reason for the brand’s
strong market position.”
In March of this year, Icelandic Group plc engaged Merrill Lynch
International (“BofA Merrill Lynch”), a subsidiary of Bank of America
Corporation, to act as financial advisor to the Group in connection with
a review of strategic alternatives. These strategic alternatives were
to include, among other things, divestment of one or more of the Group’s
businesses as well as equity financings. The sale of the Group’s
operations in the United States and related businesses forms part of
this review. The transaction is subject to the approval of the
competition authorities in the United States. Merril Lynch International
is acting exclusively for Icelandic Group plc in connection with
transaction and for no one else and will not be responsible to anyone
other than Icelandic Group plc for providing the protections afforded to
its clients or for providing advice in relation to the transaction.
Further information:
Finnbogi Jónsson, Iceland Enterprise Investment Fund CEO, tel. +354-571-7080
Herdís Fjeldsted, Chairman of the Board of Icelandic Group, tel. +354-571-7080
Pétur Th. Óskarsson, tel. +354-863-6075
About Icelandic Group:
Icelandic Group is an international company with a history of almost
seven decades in the Icelandic fisheries industry. The company operates
both in the retail market and in the catering and restaurant sector.
Icelandic Group produces and sells fresh, chilled and frozen marine
products around the world, and in recent years the company has expanded
its development of more complex and value-adding seafood meals for the
retail market. At the end of 2011, when the company’s assets in the
United States and related operations have been sold, the company will
have operations in Iceland, Europe and Asia and the total turnover of
Icelandic Group will be an estimated ISK 80 billion.
About High Liner Foods Incorporated
High Liner Foods Incorporated is a leading North American processor and
marketer of prepared, value-added frozen seafood. High Liner's branded
products are sold throughout the United States, Canada and Mexico under
the High Liner(®), Fisher Boy(®), Mirabel(®), Sea CuisineTM and Royal
Sea(®) labels, and are available in most grocery and club stores. The
Company also sells its High Liner(®), FPI(®), Mirabel(®), and VikingTM
food service products to restaurants and institutions, and is a major
supplier of private label seafood products to North American food
retailers and food service distributors. High Liner Foods is a publicly
traded Canadian company, trading under the symbols HLF and HLF.A on the
Toronto Stock Exchange.
http://www.highlinerfoods.com
