ICELAND SEAFOOD MOVES ON ELBA SL
Iceland seafood moves on Elba SL. Iceland Seafood International has announced it has agreed heads of terms with GPG seafood ehf and IceMar ehf, the current owners of Elba S.L. (“Elba”) to acquire the Barcelona based company as an addition to Iceland Seafood’s S-European operation.
The heads of terms are signed with the intention of both parties to conclude a share purchase agreement as soon as possible. The proposed acquisition will be subject to customary Due Diligence review and board approval. The intention is to have the conditions fulfilled before year end 2019.
Elba S.L. is a strong seafood player in Spain, focussing on frozen light salted products. The company is based in Barcelona and operates a production facility with total sales volume of 2.200MT per year. Products are sold under the ElBa brand, which has a strong presence in the Spanish market and stands for quality seafood. The estimated turnover of the company in 2019 is €14,500,000 and the projected EBITDA for the year is in the range of €450,000.
According to the head of terms, the proposed acquisition price for 100% stake in Elba is €4.400.000 on a debt free cash free basis, with 50% of the payment settled with cash and the other 50% with new shares in Iceland Seafood. Subject to fulfilment of all conditions and the head of terms, current shareholders of Elba will hold approximately 1.2% stake in Iceland Seafood post the transaction, which is intended to settle in Q1 2020.
Bjarni Ármannsson CEO of Iceland Seafood said:
“Elba will be a great addition to our operation in Spain and enable us to further leverage our distribution and production capabilities in this largest market for Icelandic Cod. We believe this move is beneficial for our shareholders, customers and suppliers. This acquisition is fully aligned with our strategy to focus on growth in our key markets where we have a strong platform and market position. At the same time it will be a pleasure to welcome GPG Seafood and IceMar to our shareholders group and we welcome the employees of Elba in Spain to the Iceland Seafood family. We look forward to the partnership.”
Gunnlaugur Hreinsson, Chairman of GPG Seafood ehf said:
“It is an exciting step for Elba to join Iceland Seafood operation in Spain and become a part of a leading seafood provider in the South European market. We also believe the acquisition will deliver a strong partnership between GPG Seafood and Iceland Seafood that will be in the benefit of both companies for the years to come.”
Gunnar Örlygsson, Chairman of IceMar ehf said:
“The last couple of years, since we acquired Elba in 2017 have been very exciting, we have really enjoyed the cooperation with Elba’s highly qualified management team and employees during this period. Elba is a strong company built on solid grounds and will be an excellent addition to the Iceland Seafood Group. “
Tracing its roots to 1932, Iceland Seafood is a worldwide sales, processing and marketing company for frozen, salted and fresh seafood. Headquartered in Reykjavík with operations in eight countries with over 600 employees. Iceland Seafood is a publicly traded company with its shares listed on Nasdaq Iceland. The Group generates annual sales of €450m across 45 countries.
The S-European division of Iceland Seafood stands for majority of the Group‘s profitability. The divisional annual sales is around €180m and it delivers profit before tax of close to €7m.