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The letter was signed following the seafood processor’s announcement last month that it plans to sell its operations in the UKNo
Although a legally non-binding document, the provisions set forth in the Letter of Intent will serve as key terms in the event of a potential transaction.
The parties involved in the sale have agreed to conduct an ‘expedited’ due diligence process with the aim of concluding a binding agreement before December.
running at a lossNo
Iceland Seafood previously reported that its UK business was running at a loss, citing a challenging external environment and operational difficulties as key issues.
In its third quarter financial results, Iceland Seafood said the UK operation had reduced the group’s profitability to such an extent that the board did not feel it was reasonable to continue.
Group Chief Executive Bjarni Armanson said: “We are experiencing headwinds, which require making difficult decisions and sailing to accommodate wind changes. We believe in the future and we are well positioned in our core markets with well-run value-added operations in Europe. No
Rational and careful No
“But we have to adjust to a different reality and therefore exit the UK market from a value added perspective. It’s a tough decision, but I believe it’s the right one. We are committed to our key stakeholders and maintain our commitment to run a profitable business in the European value-added seafood industry. We see opportunities but we understand that we must be rational – and cautious in the near future.No
Meanwhile, 2 Sisters Food Group confirmed it is looking to sell its Holland Pies and Portumna pastry businesses to an ‘interested party’.
LETTERS VIEWED BY FOOD MANUFACTURING SISTER TITLE grocery It revealed that the producer had shared contracts for bakery assets with Isle of Man-based Arafura Ltd and a subsidiary of Ireland-based Innovest Holdings.
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