A letter of intent has been signed by Iceland Seafood to acquire issued capital shares of Irish seafood processing company Carrs & Sons Seafood Limited Ltd., the firm announced on 28 August.
Specializing in quality smoked salmon production, Carrs & Sons operates out of its facility in Killala and sells predominantly to retail. If the merger comes to pass, it will further strengthen Iceland Seafood’s growing position in the Irish seafood market. In 2018, the Reykjavík-based frozen, salted, and fresh seafood firm acquired Dublin-based Oceanpath, it noted.
“The proposed acquisition of Carrs & Sons is a great fit to that operation and would strengthen the company position further,” Iceland Seafood said in a press release.
Carrs & Sons’ annual sales were EUR 11.5 million (USD 13.7 million), with a profit before tax (PBT) of EUR 0.9 million (USD 1.07 million), in 2019. The company’s products are sold under retailers’ private labels as well as branded, with a significant part of the sales made by the Nolan Seafoods brand, which is considered a leading brand for smoked salmon in Ireland.
“Iceland Seafood sees the proposed acquisition of Carrs & Sons as a great fit to the group’s strategy to focus on growing value-added activities in markets where we have a strong platform and market position. The acquisition will further strengthen the group position servicing the Irish retail market. From a group perspective, it is also a significant step to create an advantageous balance between retail and foodservice sectors. With the proposed acquisition and the forthcoming retail growth in U.K., around 50 percent of the group profitability will be generated from retail,” Iceland Seafood said.
An LOI between Mondi Group AB and Iceland Seafood states that the latter will acquire a 100 percent stake in Carrs & Sons for EUR 6.5 million (USD 7.7. million), “based on 2019 financial statement and other information provided by the seller at this stage.” All parties aim to complete the transaction before 30 November, 2020.
Iceland Seafood will post its interim consolidated financial statement for 1H 2020 after the markets close today, 31 August. The company said it will host an online meeting for investors and market participants to discuss the figures.
