20 December 2011

Icelandic Group Press Release

 

Icelandic Group has completed the sale of its operations in the United States and related sourcing and manufacturing businesses, including its Asian operations. The buyer is the Canadian fisheries company High Liner Foods (High Liner). The final enterprise value amounted to USD 232.7 million, which corresponds to ISK 232.7 billion at the current exchange rate.In addition, there was a revaluation relating to current assets in the amount of USD 15.2 million, or ISK 1.8 billion, which will accrue to the seller.The sale represents the completion of the company’s financial reorganisation.In connection with the divestment, Landsbanki has sold its 19% holding in Icelandic, so that EIF is now the sole owner of the company.

With the sale of its operations in the United States and divestment of assets in Germany and France, Icelandic Group has now sold assets for a total of ISK 41 billion, with ISK 21 billion of that figure paid by taking over debts. The agreement on the acquisition by the Enterprise Investment Fund of an 81% share in Icelandic in 2010 included a provision to the effect that if divestment plans proved successful the Fund would buy Landsbanki’s remaining shares in the company. The company itself currently holds 10% of its own shares.

Herdís Fjeldsted, Chairman of the Board of Icelandic Group: “Completing the sale of Icelandic’s assets in the United States, and in particular the sale of assets in France and Germany earlier this year, was an important milestone. Following the reorganisation process, which is now in its concluding stages, the company is financially strong and fully capable of achieving growth and profitability.”

Lárus Ásgeirsson, Icelandic Group CEO:“Following this transaction, Icelandic Group has operations in Iceland, Europe and Asia, with a turnover of approximately ISK 80 billion and 1200 employees. The challenge ahead is to streamline operations still further and strengthen the company’s business. Services to Icelandic producers are extremely important for our business operations and we will work closely with them to strengthen still further the overseas marketing of Icelandic marine products.”

Further information: .

Herdís Fjeldsted, Chairman of the Board of Icelandic Group, tel. +354-571-7080

Lárus Ásgeirsson, Icelandic Group CEO, tel. +354-560-7800

Pétur Th. Óskarsson, Iceland Enterprise Investment Fund, tel. +354-863-6075