High Liner Foods Incorporated has completed the acquisition of Icelandic Group''s US and Asian operations for US$232.7m.
This includes US$2m in closing adjustments. In addition, working capital adjustments net of cash balances were US$15.2m, reflecting the seasonally high working capital levels at the time of the closing of the transaction.
"We are very pleased to have completed this acquisition, as it represents an important element of High Liner Foods' growth strategy. This acquisition positions High Liner as the leading value-added seafood supplier in North America, and adds incremental value to our shareholders," said Henry Demone, President and CEO of High Liner Foods.
For the 12 months ending September 2011, Icelandic Group's US and Asian operations recorded sales of US$268m and pro forma adjusted earnings before interest, taxes, depreciation and amortisation of approximately US$29m, after taking into account the full year of savings from the investment in a new cold storage facility that opened in 2011.
High Liner expects the acquisition to be immediately accretive to earnings per share before one-time costs related to the acquisition. On a pro forma basis, High Liner's annual revenue would be approximately $900m for the 12 months ending September 2011.
The transaction was financed with new long-term debt and an increase in High Liner's existing asset-based revolving loan facility from US$120m to US$180m. The long-term debt is a US$250m senior secured term loan.
