Brim has entered an agreement for the acquisition of Fiskvinnslan Kambur and Grabrok in Hafnarfjordur.
Kambur is a fish processing company that handles roughly 2,000 metric tons of longline cod. The purchase price is ISK 2.3 billion (€16.5 million/$18.4 million) and will be paid in part with shares in Brim.
Grabrok is a fishing company that holds 850 metric tons of longline cod, with a purchase price of ISK 772 million (€5.5 million/$6.2 million).
The agreement is still subject to normal conditions, including financing, approval of the board of directors of Brim and the approval of the Competition Authority.
In September, Utgerdarfelag Reykjavikur, the largest shareholder of Brim inked a deal to acquire all the shares FISK Seafood has in the Icelandic fishing giant. If the deal goes through, Utgerdarfelag Reykjavikur will own 48 percent of Brim’s shares. Approval of the deal is set for Dec. 1.
Brim posted a near fivefold increase in 2019 second quarter earnings before interest, taxes, depreciation and amortization (EBITDA), hitting €13.5 million ($14.9 million). This came on top of a 4.6 percent increase in operating revenue to €52.1 million ($57.5 million).
*Editor's note: In the original version of Brim's announcement, the company stated that should the acquisition be successful, Brim's total longline cod quota would exceed the federal limit, giving the group six months to reallocate.