With the acquisition of Pickenpack – Hussman & Hahn Seafood, Icelandic Group Plc strengthens its position as a global leader in the sales and production of seafood.

The acquisition will be financed with new shares in Icelandic Group. Following the transaction and an increase in the share capital of Icelandic Group, shareholders in Pickenpack will own 21.25% of the share capital in Icelandic Group. Based on the current market value of Icelandic Group’s shares, the purchase price amounts to some ISK 5.5 billion.

Pickenpack’s turnover forecast for 2006 is EUR 194 million, or some ISK 14 billion. Icelandic Group’s revenues in Europe are set to increase substantially with the acquisition, or by some 28% in 2006.

Pickenpack operates a seafood production plant in Luneburg, Germany, which produces some 70,000 tons of frozen products annually. Pickenpack also operates a caviar production plant in Cuxhaven which produces some 700 tons of products annually. Approximately 65% of the company’s sales are in Germany. Pickenpack employs some 600 people.

With the acquisition, Icelandic Group strengthens its market position on mainland Europe substantially. Greater efficiency in the production of frozen seafood will also be created through cooperation between the Pickenpack production plant in Germany and the Coldwater plants in Grimsby. It will also be possible to market Pickenpack’s products through Icelandic’s marketing and sales systems in Europe.

Gunnlaugur Sævar Gunnlaugsson, Chairman of the Board of Icelandic Group says that the investment is in line with Icelandic Group’s strategy to be a global leader in the production and sale of seafood products.

Sources:
Iceland Stock Exchange
Icelandic Group