Iceland Seafood drops plans to sell UK business

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Iceland Seafood International has dropped plans to sell its UK subsidiary

Iceland Seafood International (ISI) has dropped its plans to sell its UK subsidiary but remains open to further consolidation of the business.

The seafood processor previously signed two separate letters of intent with prospective buyers to sell the business in December last year, but neither negotiation turned out to be successful.

A spokesman for the seafood firm said: “In an industry where consolidation is needed, Iceland Seafood made it public late last year it was interested in selling the UK business. 

Company’s value

“It is however the conclusion of the board of Directors that the proposals received didn’t reflect the value of the company, as external conditions for the industry have been challenging.”

ISI said the UK business had since made significant progress with its strategic partners in recovering unprecedented inflationary cost and had added significant new business.

In light of this turnaround, it predicted better results and returns on investments in equipment that would increase its ability to grow and reduce unit costs.

Markets stabilising

“Markets are stabilising, after the high volatility and constant upward cost pressure experienced throughout last year, which severely impacted the results of IS UK in 2022,” the spokesman added. “IS UK will continue to cooperate closely with its loyal customers and suppliers.

“Iceland Seafood will review its strategy on an ongoing basis and remains interested to support further consolidation of the UK business at the right time and terms.”

The company also announced it will publish its consolidated financial statement for the year ended 31 December 2022 after closing of markets on February 22nd 2023. The same day at 4.15pm, the company will host a meeting for investors and market participants, where management will present and discuss the results.

Meanwhile, last month, Kerry Group has announced plans to sell the trade and assets of its Sweet Ingredients Portfolio to IRCA for a consideration of €500m (£443m).