FDBusiness.com

Iceland Seafood International is acquiring Oceanpath Group, the leading fresh fish company in Ireland owning the iconic Dunn’s of Dublin brand, which has been operating since 1822. The acquisition marks a significant step in Iceland Seafood International’s strategy of delivering strong organic growth combined with strategic acquisitions of first rate seafood companies into the group.

Iceland Seafood International has agreed to purchase 67% of Oceanpath Group with management retaining a 33% share. The purchase price is €12.4 million to €13.4 million on a debt and cash free basis. The final price will be subject to actual profitability of Oceanpath for the current financial year ending on 30th April 2018 and the following 12 months until 30th April 2019.

Oceanpath is the largest fresh seafood processor to Irish retailers, offering fresh and smoked seafood to retail customers and wholesalers in their local market. The group operates two factories, Oceanpath which sources, processes and sells fresh and frozen seafood and Dunn’s of Dublin, a premium retail brand best known for its smoked salmon products.

Under the current leadership the company has shown excellent growth and profitability in recent years. Expectations for revenues in the current financial year (ending 30th April 2018) are circa €33-35 million, generating normalised profit before tax of €1.8 million-€2.2 million, up from €30.9 milliion revenue and €1.4 million profit before tax achieved the year previous for the period ending April 2017. It is hoped the acquisition of Oceanpath by Iceland Seafood International will deliver a strong partnership that delivers further strong organic growth in years to come.

Oceanpath is currently owned by the Ecock family. Alan Ecock is the largest shareholder and will continue as Managing Director of the business, whilst his sons, Ken and Trevor, will continue to be employed as commercial and production directors respectively.

Helgi Anton Eiríksson, chief executive of ISI, comments: “The acquisition of Oceanpath continues ISI’s strategy of growing its value-added activities in Europe. The company’s experienced management and market leading position in Ireland within the fresh fish and smoked seafood market provides for an excellent platform for future growth. The acquisition brings the opportunity of expanding the business at a domestic and international level via the introduction of new products into ISI Group sales channels, taking advantage of ISI’s strong commercial set-up in Europe, North America and Asia. At the same time Oceanpath has a unique platform to expand its product range in the local market via accessing ISI’s strong manufacturing and group sourcing network.”

Alan Ecock, managing director of Oceanpath, says: “The Irish seafood marketplace has seen positive growth in the last few years. Our aim is to be at the forefront of this trend in years to come and to continue to serve our market through innovation, strong sourcing and focus on high quality products for our customers.”