Iceland Seafood International hf. (ICSE:ICESEA) signed a Letter of Intent to acquire 80% stake in Ahumados Dominguez Sa from Mestanza family for €12 million on May 17, 2021. Iceland Seafood International hf. finalized an agreement to acquire 85% stake in Ahumados Dominguez Sa from Mestanza family for €12.4 million on May 17, 2021.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. As on September 20, 2021, the board of directors of Iceland Seafood has now agreed to increase the share capital of the company by issuing 40 Million new shares. Investors have subscribed for all the shares at a price 17.10 per share, which is equal to highest bid on Nasdaq Iceland at end of Friday September 17th. The new shares will be paid for in cash and the consideration will be used to partly finance the acquisition of Ahumados Dominguez. The company will operate as an independent entity with its own management but will be in close cooperation. The remaining 15% will be held by Pedro Mestanza, the Managing Director and Chief Executive Officer of the Ahumados Dominguez, who will continue to lead the company post acquisition. The Ahumados is evaluated at €15 million or 8.8xEBITDA on a debt and cash free basis. Ahumados sales in 2020 were €19.3 million, EBITDA €1.7 million and PBT of €1.1 million. The transaction is expected to close in mid-July 2021. As per September 20, 2021, the transaction is expected to close on 27 September 2021. Mar Advisors acted as financial advisor for Iceland Seafood International on the transaction.

Iceland Seafood International hf. (ICSE:ICESEA) completed the acquisition of AHUMADOS DOMINGUEZ, S.A. on September 27, 2021.