The transaction is valued at approximately US$230.6m. Completion of the transaction, which is subject to customary closing conditions, including regulatory approvals, is expected in late 2011 or during the first quarter of 2012.
Henry Demone, president and CEO of High Liner Foods, said: “We are very pleased to have reached this agreement, which will make High Liner Foods the leading value-added seafood supplier in North America. Icelandic USA is an established leader in the US food service market and is managed by an outstanding team. The operation will be a good fit with High Liner’s US operations and allow us to address a larger, consolidated customer base through stronger purchasing power.
“The combination provides High Liner a more efficient supply chain with stronger product development capabilities. The transaction is expected to strengthen our industry leadership position and create incremental value for our shareholders.”
The acquisition includes Icelandic USA’s processing plant in Virginia (US) and subsidiaries that operate a processing plant in China and procure product from other Asian countries. High Liner is acquiring several brands in connection with the acquisition.
High Liner has agreed to a seven-year royalty-free licensing agreement with Icelandic Group for the use of the Icelandic SeafoodTM brand in the US, Canada, and Mexico. High Liner has also structured a long-term distribution agreement with Icelandic Group that will ensure that producers in Iceland will continue to have the same access to the US market as they do today and that High Liner will continue to be able to supply its customers with fillets from Iceland under the Icelandic SeafoodTM brand.
Source: High Liner Foods
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