ISI takes controlling stake in Spanish salmon processor

Global fish trading company Iceland Seafood International (ISI) has signed a letter of intent to acquire an 80% stake in the Spanish salmon processor Ahumados Dominguez.

The move is the latest in a series of major acquisitions by this fast-expanding seafood business, which has extensive interests across the globe, including the UK where it now owns Grimsby-based Havelok Seafood.

Last November ISI took over the specialist Irish smoked salmon company Carr & Sons in a deal worth around £6m.

The company sees Spain, where it already has extensive interests, as one of its most important markets. Ahumados Dominguez is a retail-oriented business with a strong brand and consumer recognition in the smoked salmon sector in Spain. It is known for its premium quality.

ISI said the move will strengthen Iceland Seafood’s proposition in the Spanish retail market, as well as creating opportunities to use the platform Ahumados Dominguez has created, for selling high quality cod products from Iceland.

The remaining 20% stake in the Spanish company will be held by Pedro Mestanza, Managing Director, who will continue to lead the company post-acquisition.  The company’s sales in 2020 were €19.3m, its EBITDA was €1.7m and profit before tax was  €1.2m.

The statement said: “With the acquisition, Iceland Seafood will enter the salmon sector in Spain, but salmon is, with hake,  the leading seafood species 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 letter of intent, the purchase price for the 80% stake will be “8.8 x EBITDA 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.