Iceland Seafood bolsters Irish retail presence with new acquisitions
Oceanpath, the Irish subsidiary of Iceland Seafood International (ISI), has completed the acquisition of smoked salmon producer Carr & Sons Seafood Limited Ltd. from Mondi Group AB. As part of the same move, it has purchased Mondi Properties Ltd., which owns the firm’s production facilities.
Confirming the EUR 6.5 million (USD 7.7 million) deal, ISI said in a statement that Carr & Sons further enhances and strengthens its position in the Irish market, which is built on the “solid ground” that followed its acquisition of fresh seafood processor Oceanpath in 2018.
ISI added that Carr & Sons will be “a good fit” to the group’s strategy to focus on growing value-added activities in markets where it has a strong platform and market position, and also that the acquisition is “a significant step” toward an advantageous balance between retail and foodservice sectors.
With the acquisition and the forthcoming retail growth in the United Kingdom, it anticipates that around 50 percent of the group’s profitability will be generated from retail.
“Carr & Sons is a well-established company in the market and we are looking forward to have a stronger position in the Irish market,” Iceland Seafood International CEO Bjarni Ármannsson said. “This creates opportunities for further innovation and consumer benefits, which are the only sustainable measures long term. This is a part of our journey of building strong value-added companies that are close to the customer and we can, as a group, leverage our sourcing power, manufacturing, and marketing expertise.”
Carr & Sons operates a production facility in Killala, on the west coast of Ireland, with sales predominantly to Irish retail outlets. In 2019, its annual sales amounted to EUR 11.5 million (USD 13.6 million), with the company generating a profit before tax of EUR 900,000 (USD 1.1 million).
Its products are sold both as branded and under retailers’ private labels, with a significant proportion of the sales under the Nolan Quality Seafoods smoked salmon brand. The company also has a strong focus on the production of organic salmon, which is sold in Ireland and exported to Europe.
Iceland Seafood has also simultaneously exercised its option to acquire the remaining 33 percent stake in Oceanpath from Ecock Holding Ltd. for EUR 9 million (USD 10.7 million) Consequently, it now owns 100 percent of Oceanpath.
The Ecock family will continue to be invested in the company through its ownership of shares in Iceland Seafood.
“We are delighted to further strengthen our position in the Irish seafood market. Oceanpath is a well-run, efficient, customer oriented and innovative company. We are very proud of our relationship with the Ecock family and are confident that the management team will utilize this opportunity well,” Ármannsson said.
Headquartered in Reykjavík and with operations in eight countries, publicly-traded Iceland Seafood generates annual sales of around EUR 450 million (USD 532.7 million).
Photo courtesy of Iceland Seafood