FPI strikes deal to sell U.K. division

Fishery Products International has sold its British subsidiary, in another step in breaking up Newfoundland and Labrador's flagship seafood processor.

St. John's-based FPI says it has sold its subsidiary the Seafood Company to rival Young's Seafood Ltd., which is also based in the United Kingdom.

The deal, which involves an undisclosed price, will close in London next week, FPI said in a statement Thursday.

"Net proceeds of the transaction will be used by FPI to reduce debt," the company said.

FPI reached tentative deals in April to sell almost all of its other assets, particularly plants and trawlers, to two companies.

Ocean Choice International, based in St. John's, is poised to purchase five plants and an offloading facility.

Nova Scotia processor High Liner Foods intends to purchase a secondary processing plant in Burin as well as a lucrative U.S.-based marketing arm.

Those deals have not yet closed.

FPI was formed in 1984 as a provincial Crown corporation, following the collapse of three companies. It was privatized in 1987.

The Newfoundland and Labrador legislature gave its approval to tentative deal, which involves a complicated transfer of federal fishing quotas, in May.