Icelandic Group, the seafood processor, has struck a deal to sell its operations in France and Germany to a consortium led by Asian seafood group Pacific Andes.
The seafood company said its French and German operations hold “strong market positions”, with combined annual sales in fiscal 2010 of EUR270m (US$392m). The businesses produce a total of 83,000 tonnes a year.
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The sale, announced today (3 June) for an undisclosed sum, is part of Icelandic’s review of its business. In March, Icelandic hired Bank of America Merrill Lynch as advisors to look into the “strategic alternatives” for the company, including disposals.
The review was announced amid some uncertainty about the direction of the business. Earlier this year, talks between FSI, the consortium of pension funds that owns Icelandic, and private-equity firm Triton over the sale of the seafood company’s operations collapsed.
At that point, the consortium put Icelandic’s US and Chinese operations on the block but said it would keep hold of the company’s European businesses.
The discussions over Icelandic’s future also led to conflict between parts of the company’s senior management. In February, the chief executive, deputy chief executive and CFO quit.
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By GlobalDataCurrent CEO Brynjólfur Bjarnason said: “The sale of our French and German platform is an important strategic step for Icelandic Group towards sharpening its operational focus. This transaction is a key milestone for the company, whereby it is now well positioned to lower its debts and strengthen existing operations.”
Icelandic entered Germany in 2005 when it acquired Pickenpack Hussman & Hahn, a producer of “value-added” seafood for retail and foodservice customers.
A year later, Icelandic acquired a plant in the French town of Wimille, which has made frozen seafood under the Icelandic Boulogne Sur Mer brand name. Icelandic’s sales office in France is also included in the transaction.
