Iceland Seafood International has signed a tentative deal to sell its UK business.

Last month, the company announced its UK arm was “not a strategic fit” but insisted the division could be “a great addition to other companies in the sector”.

The assets centre on a factory in Grimsby in eastern England. The facility was part of a consolidation exercise in 2020 when a new plant was built in the town to replace another site and a factory in Bradford, West Yorkshire, was assimilated.

Yesterday (5 December), Iceland Seafood International said the company now had a “letter of intent” on a potential deal with what it described as “a respected industry player”.

“The LOI is a legally non-binding document but its provisions will serve as key terms in the event of the potential transaction,” the group said in a brief statement.

“The parties have agreed to run a swift due diligence process with the aim to complete a binding agreement before [the] end of December. [Any] further update on the progress made in relation to the proposed transaction and its financial impact on Iceland Seafood will be provided as appropriate.”

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By GlobalData

Just Food has asked Iceland Seafood CEO Bjarni Ármannsson to confirm the identity of the suitor for the UK business and to clarify which assets could be sold.

Seafood-industry specialist news service Undercurrent, citing unnamed sources, said today Sykes Seafood is in talks with Iceland Seafood.

Just Food has approached Sykes Seafood MD Dan Wright for comment.