Scandi Standard, through its Finnish subsidiary Naapurin Maalaiskana has entered into a binding agreement to acquire ready-to-eat meat and poultry processing business in Honkajoki, Finland.
According to a press release from Scandi Standard, the acquisition is expected to generate sales of a approximately SEK72 million (US$7 million) from about 1,000 metric tons of product weight, primarily based on chicken raw material.
The parties have agreed not to disclose the terms of the transaction.
In recent years, the Naapurin Maalaiskana subsidiary has succeeded in maintaining a good level of growth, the company said, primarily driven by the continued positive development of its own brand Naapurin Maalaiskana. Through the acquisition, more capabilities will be added to the business.
“I am confident that the addition will further differentiate our business in Finland and strengthen the Naapurin Maalaiskana brand. The deal is also intended to improve our overall price realization in Finland since it allows the domestic sale of chicken parts which would otherwise be exported at discounted pricing. The Honkajoki business provides us with a great platform to develop this part of the Finnish market over the coming years,” said Jonas Tunestål, CEO of Scandi Standard.
Sweden-based Scandi Standard, according to the WATTPoultry.com Top Companies Database, is the 15th largest broiler company in Europe, having slaughtered 177.5 million broilers during the past year. The company also is active in the egg industry, with a flock of approximately 1 million layers.
