“HKScan” will sell the Baltic business to the Estonian food company

“HKScan” is one of the largest food manufacturing companies in the Nordic countries and includes meat processing companies in Finland, Sweden, Denmark and the Baltic states.

The purchase price of the debt-free shares is 90 million euros, of which 20 million euros depend on the joint performance of the separately defined meat businesses and the Baltic meat business of “Maag Grupp” in subsequent years.

Of the fixed purchase price of €70 million, €55 million will be paid upon closing of the deal, with the remainder to be paid over the next three years.

“The sale of the Baltic business will improve the profitability of “HKScan” and strengthen its balance sheet,” the company’s management announced, noting that this transaction will also enhance the company’s opportunities to increase operational efficiency and implement strategic long term for “HKScan” to become a versatile food company.

The transaction is expected to close in the second half of 2023, as it still needs to be approved by the Latvian and Estonian regulators. The “HKScan” subsidiaries in the Baltic countries and their personnel will not be transferred to the new owner until the transaction is completed.

“HKScan Latvia”, which has been part of the “HKScan” group since 1998, produces products under the brands “Rīgas miesnieks”, “Rakvere”, “Tallegg” and “Jelgava”.

The net turnover of the Baltic business of “HKScan” in 2021 reached 170 million euros, and the average number of employees in the three countries is about 1,500.

“HKScan” has been operating in the Baltic countries since the summer of 1998.

It has already been reported that “HKScan Latvia” worked with a turnover of 50.17 million euros last year, which is 2% more than in 2020, and the company’s profit increased by 14.4% and was 702,537 euros.

“HKScan Latvia” company was registered in 1992 and since 1998 is part of “HKScan” group. The largest shareholder of “HKScan Latvia” is Finnish “HKScan” (99.87%). The share capital of the company is 2,214 million euros.