Following an announcement in late November, Iceland Seafood has signed a Letter of Intent (“LOI”) with “a respected industry player” to sell its subsidiary Iceland Seafood UK Ltd.
The parties have agreed to run a swift due diligence process with the aim to complete a binding agreement before end of December.
In late November, following a review of its strategy in the UK, the company’s board has decided to exit the UK market from a value added perspective.
Iceland Seafood UK has previously invested in operating facilities in Grimsby and merged its operations from Bradford and Grimsby into this location. The investment and decision of the merger was completed in March 2020, just before Covid-19 started, and the renovation and installation of the factory was “very much affected by Covid and later Brexit along with difficulties in overall operations.”
A statement by the manufacturer read: “Although it has been concluded that the UK operation is not a strategic fit for Iceland Seafood anymore, the excellent facilities and strong management team in Grimsby can be a great addition to other companies in the sector.”
Iceland Seafood said that any further updates on the progress made in relation to the proposed transaction and its financial impact on the company will be provided as appropriate.