The board of Iceland Seafood has decided to exit the loss making UK market from a value-added perspective after a strategic review iceland seafood espersen grimsby

Iceland Seafood International is in talks with Danish fish processor Espersen over a possible takeover of their troubled factory in Grimsby

Iceland Seafood International is in talks with Danish fish processor Espersen over a possible takeover of their troubled factory in Grimsby.

On 17 November 2022, Iceland Seafood International (ISI) decided to sell its subsidiary, Iceland Seafood UK Ltd after it concluded that the UK operation is not a strategic fit for Iceland Seafood.

Iceland Seafood UK invested in operating facilities in Grimsby and merged its operations from Bradford and Grimsby into one location. ISI says, “The investment and decision of the merger was completed in March 2020, just before COVID-19 started, and the renovation and installation of the factory was very much affected by COVID and later Brexit along with difficulties in overall operations.”

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The company decided that to exit this market from a value-added perspective and mandated MAR advisors to support the process. In their press statement ISI said, “Although it has been concluded that the UK operation is not a strategic fit for Iceland Seafood anymore, the excellent facilities and strong management team in Grimsby can be a great addition to other companies in the sector.”

On 05 December, ISI signed a Letter of Intent (LOI) with a respected industry player to sell its subsidiary Iceland Seafood UK Ltd but negotiations that were based on the LOI were not successful and the talks were cancelled. At the time ISI said, “Iceland Seafood will now be in communication with other interested parties and will provide information as appropriate if any of these communications will develop to a formal discussion.”

On Friday 30 December, ISI issued a follow-up LOI saying in a statement:

“Further to previous announcement on December 12, Iceland Seafood has today signed a Letter of Intent (“LOI”) with a respected industry player to sell majority share in its subsidiary Iceland Seafood UK Ltd.  The LOI is a legally non-binding document, but its provisions will serve as key terms in the event of the potential transaction.  The parties aim to complete the proposed transaction by February 17, 2023. Further update on the progress made in relation to the proposed transaction and its financial impact on Iceland Seafood will be provided as appropriate.”

It has since emerged from news outlets that the proposed buyer for the Grimsby processing plant is Espersen A/S.

Espersen is a world leader in the processing of frozen fish blocks, frozen fillets, specials cuts, and breaded and deluxe puff pastry fish products, with modern production plants in Denmark, Lithuania, Poland, and Vietnam and representation offices in UK, France, Germany, Sweden and Denmark. 

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Iceland Seafood International in talks with Espersen over Grimsby plant

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