Iceland Seafood International hf enters the fast-growing retail market for salmon in Spain

ICELAND
Tuesday, September 21, 2021, 07:00 (GMT + 9)

Further to Iceland Seafood’s announcement published on 17 May, Iceland Seafood is pleased to announce that an agreement has been finalised with the Mestanza family to acquire an 85% stake in the company Ahumados Dominguez in Spain. Pedro Mestanza; the company’s Managing Director, who will continue to lead the company after the acquisition, will hold a 15% minority stake and has an option to buy additional 5% stake from Iceland Seafood within the next five years.

The 85% stake in the company is acquired at €12.44m, representing a valuation in line with agreed LOI announced in May this year. The sales of the company in 2020 were €19.3m, EBITDA and PBT after adjusting for one off items were €1.7m and €1.1m respectively.  Iceland Seafood will finance the acquisition with a combination of debt and equity, further information on share issuance in relation to the acquisition will be provided when available.

Ahumados Dominguez is known for its production of premium quality smoked salmon. The company has strong brand and consumer recognition in Spanish retail. It actively runs consumer campaigns and has a direct consumer facing through its specialty stores. The Ahumados Dominquez brand is among the seven most dominant brands in the smoked salmon sector within Spanish retail. The acquisition will strengthen Iceland Seafood’s proposition in the Spanish retail sector and it will create opportunities to utilize the strong platform of Ahumados Dominguez to sell high quality cod products. At the same time Iceland Seafood will be entering the fast-growing retail market for salmon in Spain. Utilizing opportunities that Ahumados Dominguez has as a standalone company and new opportunities created with the acquisition, the aim is to significantly grow both sales and profitability in the coming years.

Bjarni Ármannsson CEO: “I’m pleased we are announcing the acquisition of Ahumados Dominguez. This is a very important part of our ambition to strengthen our position into Spanish retail and at the same time, entering the fast-growing salmon sector in Spain. Ahumados Dominguez is an excellent addition to the current strong footprint in salmon that we have in the Irish salmon sector. Annually, the Group will be producing high quality salmon products from over 6,000 MT of raw material, predominantly for retail. We are confident that the Ahumados Dominguez experienced management team and strong consumer brand position will create an excellent platform for future growth and welcome this new addition to the group.”

Pedro Mestanza, MD Ahumados Dominguez: “It is an exciting step for Ahumados Dominguez to partner up with Iceland Seafood. The Groups international expertise and experience when it comes to sourcing and marketing of seafood creates an opportunity to expand our range of high quality products whilst maintaining the highest standards of service to our customers”

Mar Advisors advised Iceland Seafood International on the transaction. The agreement on acquisition of Ahumados Dominguez.  The planned date of closing of the acquisition is September 27th.

Source: Iceland Seafood 

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