Business
High Liner Foods Completes Acquisition of Icelandic Group's U.S. and Asian Operations
- Acquisition Results in High Liner Foods Becoming the Leading Value-Added Seafood Supplie...
About this update from High Liner Foods Incorporated
[{"type":"text","content":"\n\n\n\n\n\n- Acquisition Results in High Liner Foods Becoming the Leading\n Value-Added Seafood Supplier in North America -\n\n\nLUNENBURG, NS, Dec. 19, 2011 /CNW/ - High Liner Foods Incorporated (TSX: HLF; HLF.A), a leading North American value-added frozen seafood company, today\n announced that it has completed the acquisition of Icelandic Group's\n U.S. and Asian operations, previously announced on November 17, 2011. \n The adjusted purchase price was US$232.7 million, which includes US$2.0\n million in closing adjustments.  In addition, working capital\n adjustments net of cash balances were US$15.2 million, reflecting the\n seasonally high working capital levels at the time of the closing of\n the transaction.\n\n\n\"We are very pleased to have completed this acquisition, as it\n represents an important element of High Liner Foods' growth strategy.\n This acquisition positions High Liner as the leading value-added\n seafood supplier in North America, and adds incremental value to our\n shareholders,\" said Henry Demone, President and CEO of High Liner\n Foods.\n\n\nFor the 12 months ending September 2011, Icelandic Group's U.S. and\n Asian operations recorded sales of US$268 million and pro forma\n adjusted earnings before interest, taxes, depreciation and amortization\n (pro forma Adjusted EBITDA) of approximately US$29 million, after\n taking into account the full year of savings from the investment in a\n new cold storage facility that opened in 2011.\n\n\nHigh Liner expects the acquisition to be immediately accretive to\n earnings per share before one-time costs related to the acquisition. \n On a pro forma basis, High Liner's annual revenue would be\n approximately $900 million for the 12 months ending September 2011,\n with pro forma Adjusted EBITDA of approximately $94 million including\n near-term synergies.  Total ongoing annual synergies are expected to be\n in the range of US$16-18 million.\n\n\nThe transaction, paid in cash, was financed with new long-term debt and\n an increase in High Liner's existing asset-based revolving loan\n facility from US$120 million to US$180 million. The long-term debt is a\n US$250 million senior secured term loan with a six-year term that pays\n interest at 5.50% plus LIBOR (floor of 1.5%). A portion of the proceeds\n was also used to repay existing long-term ...