High Liner to acquire Icelandic U.S., Asian operations
Nov. 17, 2011
LUNENBURG, NOVA SCOTIA — High Liner Foods, Inc., a frozen seafood company, has reached an agreement to acquire the U.S. subsidiary and Asian procurement operations of the Icelandic Group, a seafood company based in Iceland. The value of the agreement is $230.6 million and it is scheduled to be completed by the first quarter of calendar 2012.
“We are very pleased to have reached this agreement, which will make High Liner Foods the leading value-added seafood supplier in North America,” said Henry Demone, president and chief executive officer of High Liner Foods. “Icelandic USA is an established leader in the U.S. food service market and is managed by an outstanding team. The operation will be a good fit with High Liner’s U.S. 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 acquisition includes Icelandic USA’s processing plant in Newport News, Va., as well as 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, and, in addition, the company has agreed to a seven-year royalty-free licensing agreement with the Icelandic Group for the use of the Icelandic Seafood brand in the United States, Canada, and Mexico.
High Liner also has structured a long-term distribution agreement with the Icelandic Group that will ensure that producers in Iceland will continue to have the same access to the U.S. 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 Seafood brand.