Iceland Seafood International hf: Iceland Seafood signs a Letter of Intent to acquire Carrs & Sons, a significant seafood player in Ireland focusing on production of high-quality salmon products for retail

Iceland Seafood has signed a Letter of Intent (“LOI”) with Mondi Group AB to acquire all the issued share capital of Carrs & Sons Seafood Limited Ltd (“Carrs & Sons”), an Irish seafood processing company specialized in high quality smoked salmon production. With the acquisition of Oceanpath in March 2018 Iceland Seafood established a solid ground in the Irish seafood market.  The proposed acquisition of Carrs & Sons is a great fit to that operation and would strengthen the company position further.  
Carrs & Sons operates a production facility in Killala, focused on smoked salmon production with sales predominantly to retail.  The annual sales in 2019 amounted to €11.5m and the company showed a Profit before tax (PBT) of €0.9m in that year.  Carrs & Sons products are sold both under retailers’ private label and branded, significant part of the sales are under the Nolan Seafoods brand which is a leading brand for smoked salmon in Ireland.  The company also has a strong focus on production of organic salmon which is sold both locally in Ireland and exported.Iceland Seafood sees the proposed acquisition of Carrs & Sons as a great fit to the Group’s strategy to focus on growing value-added activities in markets where we have a strong platform and market position.  The acquisition will further strengthen the Group position servicing the Irish retail market.  From a Group perspective it is also a significant step to create an advantageous balance between retail and foodservice sectors. With the proposed acquisition and the forthcoming retail growth in UK, around 50% of the Group profitability will be generated from retailAccording to the LOI Iceland Seafood will acquire 100% stake in Carrs & Sons for €6.5m, based on 2019 financial statement and other information provided by the seller at this stage.  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 November 30^th 2020.  Further update on progress made in relation to the proposed transaction will be provided as appropriate.   1H 2020 results and electronic Investor meetingIceland Seafood will publish its interim consolidated financial statement for 1H 2020 after closing of markets on August 31^st 2020. The same day at 4.15pm, the company will host an online meeting for investors and market participants, where management will present and discuss the 1H 2020 results.The meeting will be webcasted live in Icelandic. A link to the webcast and investor presentation will be provided before the meeting commence.  Participants to the meeting can send questions in writing prior and during the meeting to the email investors@icelandseafood.com.About Iceland Seafood InternationalTracing its roots to 1932, Iceland Seafood is a worldwide sales, processing and marketing company for frozen, salted and fresh seafood.  Headquartered in Reykjavík with operations in eight countries with over 600 employees, Iceland Seafood is a publicly traded company with its shares listed on Nasdaq Iceland. The Group generates annual sales of €450m across 45 countries.  Further information:Iceland Seafood International hfBjarni Ármannsson CEO, bjarni.armannsson@icelandseafood.com