Business
Proposed Acquisition of Seachill and Placing
Proposed Acquisition of Seachill and Placing.
About this update from Hilton Food Group Plc
[{"type":"text","content":"\n \nRNS Number : 8821T Hilton Food Group PLC 18 October 2017 \n\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU NO. 596/2014).\n \n18 October 2017\n \nHilton Food Group plc (\"Hilton\" or the \"Company\")\n \nProposed Acquisition of Icelandic Group UK Limited and associated Placing\nand\nNotice of General Meeting\n \n \nHilton (LSE: HFG), a leading specialist international meat packing business, today announces its wholly owned subsidiary, Hilton Foods Limited, has agreed to acquire Icelandic Group UK Limited (\"Seachill\"), a leading chilled UK fish processor (the \"Acquisition\"), for cash consideration of £80.8 million. \nThe Company also announces its intention to conduct a non-pre-emptive underwritten cash placing to raise gross proceeds of £55.9 million (the \"Placing\") to part-fund the Acquisition through the issue of new ordinary shares at an indicative price per share of 760 pence to be confirmed pursuant to an accelerated bookbuilding process. \n\n\n\n\n Acquisition Highlights\n\n\n\n\n- Proposed acquisition of Seachill with an enterprise value of £84.0 million\n\n\n\n\n- Strategically and financially compelling transaction for Hilton \n\n\n\n\n- Attractive growth opportunity and entry into the processing and supply of fish in the UK\n\n\n\n\n- Existing customers see opportunities in adjacent categories, such as fish, both in the UK and internationally and the Acquisition therefore broadens Hilton's offering to both the Group's UK and overseas customers\n\n\n\n\n- Chilled seafood market within Great Britain has displayed resilient growth evidenced by a 20 year track record of increasing market value\n\n\n\n\n- Expected to be earnings enhancing in the first full year\n\n\n\n\nThe Placing\n\n\n\n\n- Fully underwritten placing of £53.0 million to raise gross procee...