Iceland Seafood International has signed a letter of intent (LOI) to acquire an 80% stake in Spanish salmon processor Ahumados Dominguez.
Headquartered in Alcorcón, Ahumados Dominguez is a seafood processor specialising in smoked salmon. The company recorded sales of €19.3 million in 2020, while EBITDA stood at €1.7 million.
Following the prospective acquisition, Ahumados Dominguez managing director Pedro Mestanza will hold the remaining 20% interest in the business and continue to lead the company.
Through the proposed acquisition, Iceland Seafood aims to strengthen its position in the Spanish retail market, while the transaction would also mark its entry into the country’s salmon sector.
Iceland Seafood also expects the acquisition to provide it with opportunities to utilise Ahumados Dominguez’s platform for selling cod products from Iceland.
According to the LOI, the purchase price for the 80% stake will be 8.8xEBITDA on a debt- and cash-free basis. The LOI is a legally non-binding document and will serve as a basis for discussion of the terms of the potential transaction.
The parties aim to complete the transaction before mid-July.
© FoodBev Media Ltd 2021
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