Bakkavör Group participates in Fram Foods' share offering

Bakkavör Group hf. has decided to participate in Fram Foods hf. share offering as well as excercise its warrant and thereby increasing its share in Fram Foods by converting a loan to the company into shares. Fram Foods hf. acquired Bakkavör Group’s seafood operations in 2003. Fram Foods hf. manifactures consumer packaged food produced from marine products internationally. The company has operations in six countries: Sweden, France, Iceland, Germany, Chile and Finland. The final products are produced under Fram Foods' own brand names as well as private labels. Key employees of the company are the largest shareholders, in addition to Bakkavör Group and Kaupthing Bank. Fram Food’s Executive Chairman is Halldór Thorarinsson and CEO is Hilmar Ásgeirsson.

Bakkavör Group’s ownership was 19.0% of Fram Foods hf. but is 30.5% after this transaction. In relation to the increase in ownership, the asset will be accounted for using the equity method instead of recording at cost. This transaction will not have a material effect on Bakkavör Group’s financial results.

Lýdur Gudmundsson, CEO of Bakkavör Group:

„Following the acquisition of Boyfoods Oy, one of Finland’s largest herring producers, Fram Foods has become one of the leading manufacturers of herring products in the Nordic countries. Considerable synergy effects are expected from the acquisition and with Bakkavör Group’s participation, we can contribute to the continuing growth and success of Fram Foods.”

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