Iceland Seafood intends to acquire Spanish salmon processor

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Letter of intent signed to acquire 80 per-cent of the company.

In a press release, Iceland Seafood writes that it has signed a Letter of Intent (LOI) with the shareholders of Ahumados Dominguez to acquire 80–er-cent of the share capital of the company.

The remaining 20 per-cent will be held by Ahumados Dominguez managing director Pedro Mestanza who will continue to lead the company post acquisition.

With the acquisition, Iceland Seafood will enter the salmon sector in Spain. Ahumados Dominguez’s sales in 2020 were EUR 19.3 million. EBITDA was EUR 1.7 million.

According to the LOI, the purchase price for the 80 per-cent stake will be 8.8 x EBITDA on a debt and cash free basis. Iceland Seafood’s intention is to finance the acquisition with a combination of debt and equity, with the final financing structure still being worked on.

“The LOI is a legally non-binding document and will serve as a basis for discussion of key terms for the potential transaction. Parties aim to complete the transaction before mid-July, and further update on progress made in relation to the proposed transaction will be provided as appropriate,” wrote Iceland Seafood.