Nordic poultry group Scandi Standard plans to acquire a business from Finish peer Landeli Oy Group.
Scandi Standard said it has entered a binding agreement to purchase Landeli Oy Group’s “ready-to-eat activities” through the Sweden-based company’s Finland subsidiary Naapurin Maalaiskana. Financial details were not disclosed.
The business Scandi Standard is buying in Honkajoki, Finland, is expected to generate sales in 2023 of Skr72m ($7.1m), mainly from raw chicken equating to about 1,000 tonnes, the company said in a statement.
Jonas Tunestål, who joined Scandi Standard as CEO and managing director from a unit of Danish Crown in 2022, said the acquisition will “differentiate” the company’s business in Finland where Naapurin Maalaiskana sells its namesake brand of poultry products.
He added: “The deal is also intended to improve our overall price realisation 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.”
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By GlobalDataScandi Standard sells fresh and frozen poultry and also ready-to-eat products under brands such as Kronfågel, Danpo, Den Stolte Hane and Manor Farm, as well as the Naapurin Maalaiskana line.
The company supplies the Nordic markets and Ireland.
An interim report issued in October showed Scandi Standard generated sales of Skr3.3bn in the third quarter through September, a 2% decrease in constant-currency terms. Year-to-date sales amounted to Skr10bn, up 6%.
Sales in Finland climbed to Skr246m from Skr211m for the quarter. The company’s largest market is Sweden, where sales dropped 2.5% to Skr854m.
Third-quarter group EBIT rose 23% to Skr139m and was 84% higher over the nine months at Skr352m.
Net income for the quarter stood at Skr90m, an increase of 35%, and rose to Skr207m from Skr83m over the three quarters.
Tunestål said in the results commentary: “Our focus has now switched to implementing strategies and processes that will increase long-term value creation in the group.
“We have a good financial position, which creates headroom for continued strategic investments. Scandi Standard has economies of scale in our operations, and geographically, risk diversification, as we are established in the local markets in which we operate.”
