Poultry group Scandi Standard has acquired a set of manufacturing assets from Tyson Foods in the Netherlands.
Sweden-based Scandi Standard said the deal covered two lines for the processing of breaded poultry products. The assets, located in Oosterwolde in the north of the country, were damaged in a fire in 2023.
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The financial terms of the deal were not disclosed. Publicly listed Scandi Standard said it would need to invest around €28m ($28.6m) to get the lines up and running again. The company expects to start operations in the third quarter of the year.
Scandi Standard, which also sells fresh and frozen poultry products, said the deal increases its capacity to produce ready-to-eat products by 90%.
“The current transition toward a more pan-European marketplace for frozen breaded products requires us to step up from a Nordic to a leading European player. Following a small drop in demand linked to Covid-19 and inflation, we expect European demand to pick up significantly in the coming years,” Scandi Standard CEO Jonas Tunestål said.
“As the market for breaded products is becoming truly European, cost leadership is a prerequisite to succeed. Typical clients, such as quick service restaurants (QSR’s), require the highest quality standards and contingency capacity in case of disruptions.”
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By GlobalDataThe deal with Tyson replaces Scandi Standard’s plans to spend €30m investment at a plant in Denmark that would have increased the site’s capacity by 20% by 2027.
In 2024, Scandi Standard reported net sales of around 36,000t of breaded poultry products, which it said amounted to a 5% share of the European market.
Tyson acquired the Oosterwolde site from BRF in 2019 as part of its purchase of the Brazilian group’s assets in Europe and Thailand.
Scandi Standard said the construction of the two breaded product lines was finalised early 2023, after which operations started. The site, which also comprises a wastewater treatment plant and two old factories, suspended operations in December 2023 due to the fire.
The company said as part of the overall investment two older factories are being demolished, giving it the flexibility to develop the site beyond the initial two breaded lines.
In August, Scandi Standard acquired a poultry processor, plant, farms, and land in Lithuania for €23.5m.
At the time, the group said the initial processing output at the Lithuania plant is expected in the region of 20,000 to 25,000 tonnes from this year. It is to be incorporated into Scandi Standard’s ready-to-eat business.
