Iceland Seafood has signed a Letter of Intent to sell Iceland Seafood UK Ltd after deciding to exit its loss-making operation in the UK
Iceland Seafood International Ltd has signed a Letter of Intent to sell Iceland Seafood UK Ltd after the multinational decided to exit its loss-making operation in Grimsby, England.
On Thursday 17 November last, the Icelandic owned company announced the news that it planned to exit the UK market “from a value-added perspective and mandated MAR advisors to support the process”.
The exit from the UK could mean job losses in Grimsby in a buyer is not found for the biggest fish processing plant in the area.
On November 17, Iceland Seafoods International said in a statement:
“With reference to the Q2 announcement regarding Iceland Seafood operations in the UK, where the board said it would review its strategy in the UK, the board has decided to exit the UK market from a value-added perspective.
Iceland Seafood UK invested in operating facilities in Grimsby and merged its operations from Bradford and Grimsby into this location. 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.
Iceland Seafood has now decided that it plans to exit this market from a value-added perspective and has mandated MAR advisors to support the process. 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 the company’s statement on the Letter of Intent to sell Iceland Seafood UK Ltd, they write:
“Further to Iceland Seafood’s announcement on November 17th, Iceland Seafood has today signed a Letter of Intent (“LOI”) with a respected industry player to sell 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 have agreed to run a swift due diligence process with the aim to complete a binding agreement before end of December. Further update on the progress made in relation to the proposed transaction and its financial impact on Iceland Seafood will be provided as appropriate.”