Canadian seafood processor High Liner Foods has reaffirmed its interest in assets owned by Icelandic Group after it emerged that the Iceland-supplier’s talks to sell its production operations to a rival suitor had fallen through.
Last month, High Liner made an unsolicited EUR340m (US$460.4m) takeover offer for Icelandic, a seafood supplier to retailers and foodservice customers in the US, Europe and Asia. Announcing the bid, High Liner president and CEO Henry Demone said the company wanted to buy Icelandic to boost its presence in the US foodservice sector.
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At the time of the High Liner bid, FSI, the consortium of pension funds that owns Icelandic, was in talks to sell its production operations to European private-equity fund Triton.
However, those talks have since broken down. A spokesman for FSI told just-food that Triton’s offer was “unacceptable”. The consortium has opted to put Icelandic’s US and Chinese operations on the block – but keep hold of the company’s European business. In Europe, Icelandic supplies retailers like Tesco and Marks and Spencer.
Nonetheless, High Liner remains interested in the Icelandic assets up for sale, CFO Kelly Nelson told just-food.
“The USA and Asia assets are of continuing interest. Our vision is to be the leader in value-added frozen seafood in North America. The acquisition of Icelandic would be important in moving us toward that goal,” Nelson said.
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By GlobalDataHowever, the High Liner finance chief refused to be drawn on when the company would engage in talks with Icelandic’s owners. “We do not know how things will unfold and will not be providing updates,” he insisted.
An FSI spokesman said a sale of the US and Chinese assets would strengthen Icelandic’s financial position. He said no further disposals were in the offing. “The plan is to further develop the company in Europe and strengthen the trading operations of the company. There are no plans for [the] further sale of assets from Icelandic Group,” the spokesman explained.
The discussions over Icelandic’s future have led to disagreements among the company’s senior management. Last week, the chief executive deputy chief executive and CFO tendered their resignations. A statement from Icelandic read: “Their ideas for the company’s direction no longer coincide with the strategic vision of the board of directors.” Chairman Brynjolfur Bjarnason will temporarily take over as chief executive.
