Atria announced its plans to acquire all capital shares of Lagerbergs on March 11. Financial terms of the planned transaction have not been disclosed.
According to a press release from Atria, Lagerbergs has a production plant and its own chicken rearing facility in Blekinge, Sweden, and is the third largest supplier in the Swedish market. Lagerbergs also purchases chickens from local producers.
The planned acquisition is subject to the approval of the Swedish Competition Authority. The two companies hope to complete the transaction during the second quarter of 2016.
The transaction will expand Atria’s business in Sweden, where demand for Swedish-produced poultry has increased in recent years. In 2015, retail sales of poultry meat in Sweden increased by seven percent.
Once the acquisition is completed, Atria expects its annual net sales to increase by about EUR30 million (US$33.4 million).
Atria’s net sales in 2015 exceeded EUR1.3 billion (US$1.44 billion) and operates in four divisions: Atria Finland, Atria Scandnavia, Atria Russia and Atria Baltic. According to the company’s website, the business dates back to 1903, when its oldest shareholding cooperative was founded.