HKScan and AS Maag Grupp closed the previously announced transaction whereby HKScan will sell its Baltic businesses to Estonian company Maag Grupp.
The transaction involved the shares of AS HKScan Estonia, AS HKScan Latvia and UAB HKScan Lietuva, the subsidiaries constituting HKScan's Business Unit Baltics, HKScan announced in a press release.
The debt-free purchase price was EUR90 million, of which EUR20 million is conditional on the combined performance of the separately defined meat business subject to the transaction and Maag Grupp's Baltic meat business in the following years. Of the EUR70 million fixed purchase price, EUR55 million was paid at the closing of the transaction and the remainder will be paid over the next three years.
With the transaction, HKScan's ownership of its Baltic businesses has ended. The businesses and personnel of HKScan’s Baltic subsidiaries were transferred to the new owner at the closing of the transaction. The sale of the Baltic businesses will improve HKScan's profitability and strengthen its balance sheet. In addition, the divestment will enhance HKScan’s ability to improve its production efficiency and execute its long-term strategy of growing into a versatile food company.
The transaction has also changed HKScan’s structure and financial key figures. This has been included in the company's financial reports from the beginning of 2023. Upon closing, the net gearing decreased by approximately 18 percentage points and, as a result of subsequent payments of the fixed purchase price, will decrease by an additional 5 percentage points.
The Baltic production units are located in Rakvere, Tabasalu and Viiratsi in Estonia and Jelgava in Latvia. The company’s consumer brands in the Baltics are Rakvere, Tallegg, Rigas Miesnieks, Jelgava and Klaipedos Maistas.
The Finland-based HKScan operated in the Baltics since the summer of 1998.
In a separate press release, HKScan announced that Markus Kirsberg, EVP for Business Unit Baltics and member of the Group Executive Team, will leave the company on August 31, 2023. He has been working in this position since the end of September 2022.
“I would like to thank Markus for his valuable contribution to HKScan and wish him success in the future", says Juha Ruohola, CEO at HKScan.
HKScan, according to information from the WATTPoultry.com Top Companies Database is Finland’s largest poultry producer, having slaughtered 93 million broilers during the past year. It is also involved in turkey, duck, pork and beef production.
