Brim plans to buy Fiskvinnslan Kambur and Grabrok, two Icelandic companies that have quotas for longline cod fishing, for a combined total of ISK 3 billion ($24.05 million).
Kambur owns hook vessel Kristjan HF 100, which has quota of around 2,000 metric tons of cod. The company also has a plant in Hafnarfjordur, which includes equipment such as a water-jet cutting machine, according to Brim. The purchase price for Kambur is ISK 2.3bn and will be paid in part with shares in Brim.
Brim has then agreed to pay ISK 772m for Grabrok, which owns the hook boat Steinunni HF 108, accompanied by about 850t of cod quota.
The agreement is subject to normal conditions, including financing, approval of the Brim board and the country’s competition authority, as well as other regulators.
If the acquisition is successful, Brim will exceed the statutory quota limit for cod longline catching, but will have six months to take measures that bring the company under that ceiling, according to Icelandic law.
“With this acquisition, we are strengthening Brim as a comprehensive fisheries company. We want to strengthen Brim’s operations while also strengthening our position in marketing and sales of the company’s products in foreign markets. We are now adding cod fishing permits, technologically advanced processing and human resources, which makes the company better equipped to cope with foreign competition in the processing of Icelandic seafood,” said Gudmundur Kristjansson, Brim CEO.
Last week, it emerged Icelandic fishing company Utgerdarfelagi Reykjavikur (UR), which is owned by Kristjansson, will soon own a majority stake in Brim when recent share purchases are approved as expected.
According to Iceland’s Vidskiptabladid, Kristjansson’s company recently purchased newly issued shares in Brim, which follows its purchase of a 10% stake in the company from FISK-Seafood. Fisk had purchased those shares in August from pension fund Gildi.
Following the Fisk purchase and the newly acquired shares, UR now owns 53% of Brim.
Gildi sold to Fisk after the pension fund voted against a plan for Brim to acquire several sales companies based in Asia from Kristjansson’s UR for around $35m, as well as a proposal to change the company’s name to Brim.
The firms — Seafood Services (Iceland), Icelandic Japan, Icelandic China, and Icelandic Hong Kong — had been acquired by Kristjansson at the end of 2015 from what was then Icelandic Group, as first reported by Undercurrent News.
The Brim shares were the sole assets of FISK Seafood Holding Company, a vehicle set up for the share purchase in August. It bought the shares for roughly ISK 5bn ($42m), and so has made a tidy profit, selling them on for just under ISK 8bn.