Iceland Seafood International has completed the acquisition of Elba Seafood.
ISI plaid EUR 4.4 million (USD 4.8 million) for a 100 percent ownership stake in Elba, which sells frozen light salted seafood products in Spain, in an agreement originally signed 13 November, 2019. The acquisition was completed without debt, with 50 percent of the payment completed in cash and the remainder paid via the issuance of new shares in Iceland Seafood, to be delivered to the sellers once an audit on Elba’s 2019 accounts has been completed.
Accordingly, previous owners GPG Seafood and Icemar – both Icelandic companies with ties to the seafood industry – will join Iceland Seafood’s shareholders group as part of the transaction.
Elba operates a production facility in its headquarters in Barcelona, Spain, where it produces 2,200 metric tons of seafood products annually, sold under its ElBa brand. Elba’s sales in 2019 totaled EUR 14.4 million (USD 15.2 million) and its earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year was EUR 430,000 (USD 465,500).
Iceland Seafood CEO Bjarni Ármannsson said the acquisition gives his firm a stronger presence in the Iberian Peninsula, where its signature product, cod, is popular.
“We look forward to continue development of Elba,” Ármannsson said. “Elba is a strong addition to our operation in Spain and enables us to further leverage our distribution and production capabilities in this important 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.”
Reykjavík-based Iceland Seafood is sales, processing, and marketing company for frozen, salted, and fresh seafood. The company, which is publicly traded on the Nasdaq Iceland exchange, operates in eight countries and has annual sales of EUR 450 million (USD ) across 45 countries.
Iceland Seafood has not clarified whether the company’s previous management will remain in place at Elba, but it said it will give more information regarding the acquisition and its next steps at its Q4 investor meeting on Wednesday, 4 March.
“Investments, such as Elba, will also be addressed in more detail in the investor presentation,” it said in a press release.
