OSLO: A. Espersen and the Danish subsidiary of Norway Seafoods Group have agreed that all of the latter’s frozen value-added processing (VAP) in Denmark will be transferred to the former.
The transaction includes all existing customer agreements, specifications and other immaterial assets related to the sale of products to the customers of the VAP frozen business unit in Denmark. The transaction is expected to be completed by August 1, 2015.
The financial effect of the transaction at completion is expected to increase Espersen’s full year 2015 earnings, before interest and taxes (ebit), by NOK 5- 10 million (€571,000- 1.14m). Sales proceeds and working capital reduction are expected to give a positive cash flow effect for 2015 in the range of NOK 20-30m.
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.
Following the transaction Norway Seafoods’ activity in Denmark will be focused on strengthening its market leading position within fresh value added products (VAP fresh), and its primary processing business for whitefish, the firm said.
