ICELAND SEAFOOD INTERNATIONAL PLANS TO SELL UK OPERATION

Iceland Seafood International plans to sell UK operation. Further to Iceland Seafood’s announcement on November 17th, Iceland Seafood has today signed a Letter of Intent (“LOI”) with a respected industry player to sell its subsidiary Iceland Seafood UK Ltd.  The LOI is a legally non-binding document but its provisions will serve as key terms in the event of the potential transaction. The parties have agreed to run a swift due diligence process with the aim to complete a binding agreement before end of December.  Further update on the progress made in relation to the proposed transaction and its financial impact on Iceland Seafood will be provided as appropriate.

On 17 November the board decided to exit the UK market from a value added perspective.

Iceland Seafood UK invested in operating facilities in Grimsby and merged it’s operations from Bradford and Grimsby into this location.  The investment and decision of the merger was completed in March 2020, just before Covid-19 started, and the renovation and installation of the factory was very much affected by Covid and later Brexit along with difficulties in overall operations.

Iceland Seafood has now decided that it plans to exit this market from a value-added perspective and has mandated MAR advisors to support the process.  Although it has been concluded that the UK operation is not a strategic fit for Iceland Seafood anymore, the excellent facilities and strong management team in Grimsby can be a great addition to other companies in the sector.

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