20.12.2011 Completion of sale of Icelandic Group operations in the US
Icelandic Group (The Group) has completed the sale of its operations in the United States and the related procurement and manufacturing businesses. The buyer is the Canadian seafood company High Liner Foods (TSX:HLF). The adjusted purchase price was US$232.7 million, which includes US$2.0 million in closing adjustments. In addition, working capital adjustments net of cash balances were US$15.2 million, reflecting the seasonally high working capital levels at the time of the closing of the transaction.
In connection with the sale, Landsbankinn has sold its 19% share in the Group. The Iceland Enterprise Investment Fund now owns the company in full. With the sale of its operations in the United States and divestment of assets in Germany and France, Icelandic Group has now sold assets for a total of ISK 41 billion, with ISK 21 billion of that figure paid by taking over debts. The agreement on the acquisition by the Iceland Investment Fund of an 81% share in Icelandic in 2010 included a provision to the effect that if divestment plans proved successful the Fund would buy Landsbanki's remaining shares in the company. The company now holds 10% of its own shares.