ISI to buy Solo Seafood

Iceland Seafood International (ISI) on Monday announced its intent to purchase Icelandic Iberica’s parent Solo Seafood, in a deal which will see fishing companies Fisk Seafood, Jakob Valgeir and Nesfiskur become shareholders in ISI according to intercurrentnews.com.

The acquisition will create a group with sales of more than €400 million and more than €10m in proforma pre-tax profits for 2018 “with material synergy benefits within the combined business to be added”, according to a statement on the deal.

When the deal closes, it will give ISI, which recently expanded into chilled processing with a deal for a majority stake in Ireland’s Oceanpath Seafood, nine value-added factories in seven country locations.

Also, the ISI shareholding of Fisk, Jakob Valgeir and Nesfiskur control over 10% of the Icelandic quota — around 40,000 metric tons — and eight factories in the country.

Mar Advisors, led by Magnus Bjarnason, advised Solo on the transaction and Kvika Banki advised ISI.

In addition to Fisk, Jakob Valgeir and Nesfiskur, Solo is owned by Bjarni Armannsson, though his Sjavarsyn entity, and Hjorleifur Asgeirsson, managing director of Icelandic Iberica.

The deal will be done using 1.047m new shares in ISI, which will give the Solo entities combined ownership of 44.6%.

Icelandic Iberica has turnover of €120m and is projected to hit €4.7m in pre-tax profits for 2018. The company is a big salted cod distributor in Spain, as well as dealing in seafood such as Argentinian shrimp, cuttlefish and hake. It has processing capacity in Spain and Argentina.

“This will be a transformational step for Iceland Seafood International as we will welcome three of Iceland’s major seafood players into the shareholding group of ISI creating an integrated supply chain through to the end customer.  At the same time, we continue our strategy of investing in strong well positioned value-added businesses creating synergies and new business opportunities at ISI across Europe and globally,” said Helgi Anton Eiríksson, CEO of ISI.

 

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