Letter of Intent (LOI) signed to acquire 80% stake in Ahumados Dominguez, a salmon processor in Spain with strong retail brand and consumer recognition.
Today, Iceland Seafood signed a Letter of Intent (“LOI”) with the shareholders of Ahumados Dominguez (ADSA, the Company) to acquire 80% of the share capital of the company. The remaining 20% will be held by Pedro Mestanza, the Managing Director of the business, who will continue to lead the company post acquisition. The Company’s sales in 2020 were €19.3m, EBITDA €1.7m and PBT of €1.2m.
Ahumados Dominguez is a retail-oriented company with a strong brand and consumer recognition in the smoked salmon sector in Spain. The Ahumados Dominguez brand is known for its premium quality. The proposed acquisition will strengthen Iceland Seafood’s proposition in the Spanish retail market, as well as creating opportunities to utilize the platform Ahumados Dominguez has for selling high quality cod products from Iceland. With the acquisition, Iceland Seafood will enter the salmon sector in Spain, but salmon is with hake the leading seafood specie in Spain. By leveraging both the untapped opportunities Ahumados Dominguez has as a standalone company, and the opportunities that a partnership with Iceland Seafood creates, the aim will be to significantly grow sales and profitability in the coming years.
According to the LOI, the purchase price for the 80% stake will be 8.8xEBITDA 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.
For more information:
Iceland Seafood International hf.
Bjarni Ármannsson, firstname.lastname@example.org