Business
High Liner Foods Reaches Agreement to Acquire Icelandic Group's U.S. and Asian Operations
- Acquisition Results in High Liner Foods Becoming the Leading Value-Added Seafood Supplier ...
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, Nov. 17, 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 reached an agreement to acquire the U.S.\n subsidiary (\"Icelandic USA\") and Asian procurement operations of\n Icelandic Group h.f., one of the largest suppliers of value-added\n seafood to the U.S. food service market. The transaction is valued at\n approximately US$230.6 million. Completion of the transaction, which is\n subject to customary closing conditions, including regulatory\n approvals, is expected in late 2011 or during the first quarter of\n 2012.\n\n\n\"We are very pleased to have reached this agreement, which will make\n High Liner Foods the leading value-added seafood supplier in North\n America,\" said Henry Demone, President and CEO of High Liner Foods.\n \"Icelandic USA is an established leader in the U.S. food service market\n and is managed by an outstanding team. The operation will be a good fit\n with High Liner's U.S. operations and allow us to address a larger,\n consolidated customer base through stronger purchasing power. The\n combination provides High Liner a more efficient supply chain with\n stronger product development capabilities. The transaction is expected\n to strengthen our industry leadership position and create incremental\n value for our shareholders.\"\n\n\nThe acquisition includes Icelandic USA's processing plant in Newport\n News, Virginia, as well as subsidiaries that operate a processing plant\n in China and procure product from other Asian countries.  High Liner is\n acquiring several brands in connection with the acquisition. In\n addition, High Liner has agreed to a seven-year royalty-free licensing\n agreement with Icelandic Group for the use of the Icelandic Seafood™ brand in the United States, Canada, and Mexico. High Liner has also\n structured a long-term distribution agreement with Icelandic Group that\n will ensure that producers in Iceland will continue to have the same\n access to the U.S. market as they do today and that High Liner will\n continue to be able to supply its customers with high-quality fillets\n from Iceland under the Icelandic Seafood™ ...