Iceland Seafood is looking for a buyer for UK assets as it plots exit from the market

ICELAND – Iceland Seafood International, a worldwide processing and marketing company for frozen, salted and fresh seafood is looking for a buyer for its UK business.

Iceland had earlier noted that its UK business was “not a strategic fit” but insisted that the division could be “a great addition to other companies in the sector.”

The facility is based in Grimsby Eastern England and was part of a consolidation exercise in 2020 when a new plant was built in the town to replace another site and a factory in Bradford, West Yorkshire.

In a recent statement, Iceland Seafood International reported they now had a “letter of intent” on a potential deal with “a respected industry player”.

The company further noted that 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 to complete a binding agreement before the end of December. Any further update on the progress made about the proposed transaction and its financial impact on Iceland Seafood will be provided as appropriate”

In an interview with Just Food, Iceland Seafood’s CEO Bjarni Ármannsson said: “We are experiencing headwinds, which require difficult decisions to be made and sails to be adjusted to change the winds.

We believe in the future and that we are well-positioned in our key markets with well-run value-added operations in Europe.”

At the time, seafood-industry specialist news service Undercurrent, citing unnamed sources, said Sykes Seafood was in talks with Iceland Seafood International.

Just Food indicated that Sykes Seafood did not return a request for comment when it was approached while Iceland Seafood International declined to reveal the identity of the suitor for its UK division.

Talks a deal for the assets with the unidentified buyer however broke down on the second week of December prompting the seafood company to go into yet another search for a potential buyer.

In a brief statement, Iceland Seafood International said: “Negotiations that were based on the LOI were not successful and have been cancelled. 

Iceland Seafood will now be in communication with other interested parties and will provide information as appropriate if any of these communications will develop [into] a formal discussion.”

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