Neskaupstaður, Iceland-based Síldarvinnslan has entered a deal to acquire all of the shares in Vísir for ISK 20 billion (USD 144.4 million, EUR 143.5 million).
With the interest-bearing debt of Grindavík, Iceland-based Vísir amounting to ISK 11 billion (USD 79.4 million, EUR 78.9 million), the transaction will total ISK 31 billion (USD 223.9 million, EUR 222.5 million).
According to a filing with the Nasdaq Iceland exchange, Síldarvinnslan said the two companies will now be headquartered at Grindavík, with Vísir becoming a subsidiary. It also confirmed Pétur Hafsteinn Pálsson will continue as Vísir’s managing director.
Vísir has four vessels in Iceland's total allowable catch (TAC) system and two in the hook TAC. The company also operates processing in Grindavík, and owns foreign subsidiaries. In the fishing year 2022-2023, its expected catch quota for cod is around 15,000 metric tons. It achieved an annual turnover of just over ISK 10 billion (USD 72.2 million, EUR 71.7 million) in 2021, and profit of more than ISK 800 million (USD 5.77 million, EUR 5.74 million).
Síldarvinnslan is one of the largest fisheries companies in Iceland and is the country’s main producer of pelagic products. In the fishing year 2022-2023, the group's expected catch quotas are over 36,000 cod-equivalent metric tons. Its annual turnover in 2021 was just over ISK 30 billion (USD 216.7 million, EUR 215.3 million), while its profit was around ISK 11 billion (USD 79.4 million, EUR 78.9 million).
Síldarvinnslan CEO Gunnþór Ingvason said that with the transaction, both companies will be strengthened for the future.
“We envisage great opportunities for the processing of seafood in Grindavík, among other things due to increased fish farming in the area in the coming years,” Ingvason said. “I believe that this business is of great benefit to all parties, as the fisheries sector is an international industry that must withstand tough competition.”
The acquisition is subject to due diligence, shareholder approval, and approval from Iceland's Competition Authority. It is likely Síldarvinnslan will have to sell or shift its some of its fishing quota to comply with Iceland's quota ownership limit, which will be implemented six months after the transaction closes.
Photo courtesy of Vísir
