The Icelandic Group has announced the sale of its Grimsby, England-based subsidiary Icelandic Group UK, which conducts business as Seachill, to the Hilton Food Group for £84 million. The transaction is scheduled to be completed on or around November 7, 2017.
The Seachill sale process, announced by the Icelandic Group board in April, reportedly received interest from multiple parties around the world. Oghma Partners and Íslandsbanki acted as joint financial advisors to Icelandic, while LOGOS Legal Services provided legal services.
Seachill will become a standalone division of Hilton following completion of the deal, with the existing Seachill management team remaining in place. Simon Smith, the company’s chief executive officer, will lead the business as a divisional head of Hilton.
Seachill, which owns the Saucy Fish Co. brand and is a major private label supplier, produces chilled and frozen natural whitefish and salmon and value-added products within the coated and ready-to-eat fish sectors. Significant sector expertise in consumer behavior, procurement and factory operations underpin the business and enable strong partner relationships with major retailers, according to the company.
Hilton, which is listed on the main market of the London Stock Exchange, was established in 1994 to operate a beef and lamb central meat packing facility in Huntingdon, England. The company has grown steadily since then and now has six factories across Europe, plus two joint ventures which pack products that are sold at supermarkets in 14 European countries.
Commenting on the sale, Herdís Dröfn Fjeldsted, chairman of Icelandic Group and chief executive officer of the Icelandic Enterprise Investment Fund, said: “This agreement to sell the business comes after the completion of a very successful reorganization of our UK businesses under the current management team into a single business known as Seachill, which has provided a scale that has enabled the growth of stronger and more successful strategic relationships with customers and suppliers. It is clear that Hilton is very well positioned to deliver further success for the business.”
Seachill CEO Smith remarked: “There is a very strong strategic fit between the businesses, and I believe the transaction will be welcomed by all stakeholders. Under the ownership of Hilton we will be able to invest further in our facilities and improve our organizational capability to serve our customers better. This is great news for the ongoing success of the business.”
