High Liner Foods Inc, the North American value-added frozen seafood company, has finalised its acquisition of Icelandic Group’s US and Asian operations.
The closing deal is said to be USD 232.7 million including USD 2.0 million in adjustments.
The acquisition includes Icelandic US’s processing plant in Newport News, Virginia, and a processing facility and seafood operations subsidiary in China.
"We are very pleased to have completed this acquisition, as it represents an important element of High Liner Foods' growth strategy," said President and CEO of High Liner Foods Henry Demone.
For the year ending September 2011, Icelandic Group’s US and Asian operations recorded sales of USD 268 million and pro forma adjusted EBITDA of approximately USD 29 million.
The transaction was financed with new long-term debt and an increase in High Liner's existing asset-based revolving loan facility from USD 120 million to USD 180 million. The long-term debt is a USD 250 million senior secured term loan with a six-year term paying interest at 5.50 per cent plus LIBOR.
Part of the proceeds was used to repay existing long-term debt.
High Liner's branded products are sold throughout the North America under the High Liner®, Fisher Boy®, Mirabel®, Sea Cuisine™ and Royal Sea® labels.
It also sells its High Liner®, FPI®, Mirabel®, Viking™, Icelandic Seafood®, Samband of Iceland®, Seastar® and Seaside® food service products to restaurants and other caterers, and is a major supplier of private label seafood products to North American food retailers and food service distributors.
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