A. Espersen A/S to take over Norway Seafoods VAP Frozen customer agreements(..)
Grenaa/Bornholm, June 9th, 2015: A. Espersen A/S, a leading Danish seafood company and Norway Seafoods A/S, the Danish subsidiary of Norway Seafoods Group AS, has entered an agreement whereas all customer agreements related Norway Seafoods frozen value added production (VAP Frozen) in Denmark will be transferred to A. Espersen A/S. The transaction includes all existing customer agreements, specifications and other immaterial assets related to the sales of products to the customers of the VAP Frozen business unit in Denmark. The transaction is expected to be completed by August 1st, 2015.
Following the transaction Norway Seafoods activity in Denmark will be focused on strengthening the market leading position within fresh value added products (VAP Fresh), and its primary processing business for whitefish. The plant for frozen value added production in Grenaa is not part of the transaction, and Norway Seafoods will explore further alternatives for this plant. The transaction will lead to a reduction of around 25 employees in production, sales and support functions in Grenaa.
The financial effect of the transaction at completion is expected to increase full year 2015 EBIT by NOK 5-10 million. Sales proceeds and working capital reduction is expected to give a positive cash flow effect for 2015 in the range of NOK 20-30 million. The sale of the VAP Frozen customer agreements will not have any significant impact on the remaining Norway Seafoods businesses and the Group will retain its VAP Frozen business based in Norway.
- We are pleased that a professional company such as Espersen will continue to serve our customers for frozen value added products out of Denmark. The transaction will enable Norway Seafoods to strengthen our core activities within primary processing of whitefish and fresh value added products in Denmark. At the same time we are mindful of the difficult time for our affected colleagues in Grenaa, says Anna Nord Bjercke, CFO at Norway Seafoods.
- We are looking forward to servicing the customers currently supplied by Norway Seafoods along with our existing portfolio of strategic clients – this will be done by continued focus on delivering high quality sustainable seafood products in close cooperation with our customers says Max Sørensen, COO at A. Espersen A/S.
For further information, please contact:
Anna Nord Bjercke, CFO Norway Seafoods, tel: +47 76 06 20 00
Max Sørensen, COO A. Espersen A/S, tel +45 2382 8623