Iceland Seafood has signed a letter of intent to buy Barcelona, Spain-based Elba S.L. to further strengthen its market position in southern Europe. Completion of the share purchase, which is subject to customary due diligence review and board approval, is expected to take place in late December or within the first quarter of 2020.
Elba S.L. is a major seafood player in Spain, focusing on frozen light salted fish products sold under the proprietary elBa label. The company operates a factory turning out volume of approximately 2,200 metric tons of product per year. Estimated turnover in 2019 is €14,500,000, and the projected EBITDA for the year is in the range of €450,000.
The proposed acquisition price for a 100% stake in Elba is €4,400,000 on a debt free cash free basis, with 50% of the payment settled in cash and the other half with new shares in Iceland Seafood. Subject to fulfillment of all conditions and the head of terms, current shareholders of Elba will hold a 1.2% stake in Iceland Seafood after the transaction.
“Elba will be a great addition to our operation in Spain and enable us to further leverage our distribution and production capabilities in this largest market for Icelandic cod,” said Iceland Seafood CEO Bjarni Ármannsson. “This acquisition is fully aligned with our strategy to focus on growth in key markets where we have a strong platform and market position. At the same time it will be a pleasure to welcome GPG Seafood and IceMar to our shareholders group and we welcome the employees of Elba in Spain to the Iceland Seafood family.”
Gunnlaugur Hreinsson, chairman of GPG, commented: “It is an exciting step for Elba to join Iceland Seafood operation in Spain and become a part of a leading seafood provider in southern Europe. We also believe the acquisition will deliver a strong partnership between GPG Seafood and Iceland Seafood that will be in the benefit of both companies for the years to come.”
Gunnar Örlygsson, chairman of IceMar, added: “The last couple of years, since we acquired Elba in 2017, have been very exciting. We have really enjoyed the cooperation with Elba’s highly qualified management team and employees during this period. Elba is a strong company built on solid grounds and will be an excellent addition to the Iceland Seafood Group.”
About Iceland Seafood
Tracing its roots to 1932, Iceland Seafood is a global sales, processing and marketing enterprise specializing in frozen, salted and fresh seafood. Headquartered in Reykjavík with operations in eight countries and over 600 employees on the payroll, the company is publicly traded with its shares listed on Nasdaq Iceland. The Group generates annual sales of €450 million across 45 countries.