Icelandic fishing and processing giant Brim has undertaken some major changes as it prepares the ground for the acquisition of Lýsi hf. The ISK20 billion acquisition cost of Lýsi is to be paid partly in Brim shares.
Brim put out a successful ISK6 billion purchase offer to buy its own shares. In addition, Brim has sold its 43% holding in fishing company Melnes to KG Fiskverkun, which is also paid in Brim shares, while the company has also agreed the sale of its 50% holding in Polar Seafood Denmark to Polar Seafood Greenland for DKK925 million.
Brim’s offer to acquire Lýsi was made in September last year and moves forward has now that this has been approved by the boards of directors and the Competition Authority.
The acquisition is seen as providing opportunities to strengthen Lýsi’s raw material procurement and for Brim to place itself higher in the seafood value chain.
Lýsi hf was established in 1938 to meet the growing demand for cod liver oil. In 2005 it set up a modern processing plant in Reykjavik, transforming itself from a largely bulk producer to a manfacturer of a range of high-quality products, with expanding sales and a strong focus on research and development.
