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CANADA'S High Liner Foods are firm favourites to "net" the US and Asian operations of the Icelandic Group, one of the world's largest seafood businesses.
The Nova Scotia-based processor and marketer of superior quality seafood, has announced that it is engaged in exclusive discussions with Icelandic Group ("Icelandic") to acquire Icelandic's U.S. and Asian processing assets.
The terms and conditions of the transaction are still being discussed and are subject to final board approvals. High Liner is also still in the process of completing its due diligence review. As such, there can be no assurance that a final agreement will be reached.
It is less than a year ago that High Liner made what some saw as an audacious 340-million euro bid for the entire Icelandic Group which at the time would have included UK and European operations.
But it was rejected more or less outright because Icelandic was in negotiations with the private equity firm Triton Investment Fund which fell through short afterwards. High Liner is already an important player in the North American seafood market and this latest acquisition, assuming it goes through, would make it even more powerful. The company has indicated that it wants to become the North American leader in value added seafood.
High Liner Foods Incorporated is a leading Toronto Stock Exchange 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 branded names of High Liner, Fisher Boy, Mirabel, Sea Cuisine and Royal Sea. It is also a major food service distributor.
Sales for the three months to July 2 this year rose by 13.9 per cent to (Canadian) $153.3 million, from $134.6 million a year earlier. So like the legendary Canadian Mounties, Canada's High Liner looks like getting its man - and in this case it is Icelandic USA and Icelandic Asia.
Icelandic is owned by the Enterprise Investment Fund, which was created by pension funds after the collapse of Iceland’s financial and banking system. The group has two major UK seafood operations, Seachill and Coldwater Seafoods, both successful and both based in Grimsby, and it is not yet known if it will keep them or eventually sell them on.
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