Icelandic Newport News Facility Up For Sale

By Amber Lester Kennedy Tuesday, February 08, 2011

The Icelandic Group has decided to sell its North American operation, which is headquartered in Newport News. The sale could impact 450 employees, 17 percent of whom live in the Historic Triangle.

Fishing industry news organizations, such as FishUpdate.com, are reporting that bids are expected following the collapse of takeover talks with private equity group Triton Partners last week. On Monday, the company’s Chief Executive Finnbogi Baldvinsson, Deputy Chief Executive Ingvar Eyfjord and Chief Financial Officer Finnbogi Gylfason all resigned, according to Fish Update.

While the company has made no announcements regarding possible buyers, Canada’s High Liner Foods has emerged as likely bidder. In early January, Icelandic rejected an unsolicited offer of 340 million euro from High Liner Foods.

The Newport News operation is the most profitable division in the Icelandic Group, according to Executive Vice President Dan Murphy, a Williamsburg resident. He said Monday that the global seafood company wants to concentrate on its European assets.

“That doesn’t necessarily mean that the 450 jobs locally would be affected,” he said. “We have been extremely successful the last five years, and most suitors would be inclined to buy it and let the success continue by not upsetting the apple cart.”

The company expanded its charity outreach in the community last year, sponsoring the first Icelandic Seafood Fest 8K Run, a Colonial Road Runners Grand Prix Event. The 2010 race raised $75,000 for the American Heart Association, ALS Association and Shelby M. Blevins Educational Trust. The next 8K is scheduled for June 4, 2011.

Icelandic USA is known for its seafood products under the brands Icelandic, Samband of Iceland, SEASTAR and Seaside, producing items like “seafood sliders” and Yuengling beer-battered fish. The company opened its Newport News administration and production facility in September 1997, and added a warehouse and distribution center in April 2006. In July 2010, the company announced expansion plans to build an 88,000-square-foot, sub-zero facility to be occupied by May 1.