Sweden-based poultry firm Scandi Customary has acquired an unnamed vertically built-in poultry meat firm in Lithuania.
For a money sum of EUR23.5 million (US$26.0 million), Scandi Customary has acquired the integrator’s property and enterprise.
Distributors are a bunch of native companies, and the acquisition includes a contemporary processing manufacturing facility, poultry farms and land.
Neither the present identify of the corporate nor its location had been disclosed, however Scandi Customary describes the location as “geographically favorable.”
Already in 2025, the brand new house owners are forecasting an annual output of merchandise between 20,000 and 25,000 metric tons (mt; grill weight, GW).
Completion of the deal is anticipated through the fourth quarter of this yr.
In addition to the acquisition value — which shall be financed via Scandi Customary’s credit score amenities — the Swedish agency is planning on an additional EUR5- to 7-million funding in working capital and gear as soon as it takes over the power. The brand new operation shall be built-in into the prevailing ready-to-cook (RTC) enterprise.
Potential to construct stronger enterprise
For Scandi Customary, advantages of this newest acquisition are the potential to function a state-of-the artwork processing plant at much less expense than changing an current facility, and in a rustic the place manufacturing prices are comparatively low, whereas product high quality requirements are excessive.
Moreover, it affords alternatives for growth to boost the extent of poultry self-sufficiency for the plant. At the moment, its farms generate 6,000-8,000mt in poultry meat (GW) per yr.
For Jonas Tunestål, CEO of Scandi Customary, the proposed transaction additionally matches properly into the group’s present enterprise and future technique.
“This deal is a big step within the strengthening of Scandi Customary’s total enterprise, and a catalyst to reaching our monetary targets,” he mentioned. “Along with having the very best prospect for performing as a aggressive, high-quality, provider in its personal proper, it is going to enable us to higher service probably the most price-sensitive segments in our house markets, and symbolize a cost-competitive provider assembly the strict uncooked materials standards of our Prepared-to-eat actions.”
Tunestål went on to specific the expectation that the newly acquired Lithuanian firm shall be “reasonably loss-making” over the first six to 12 months. Subsequently, he forecasts a greater margin potential for this enterprise than for the group’s present operations.
Extra on Scandi Customary
In accordance to the site of Scandi Customary, the Sweden-based group is a number one producer of hen meat product within the Nordic area and the Republic of Eire. It produces, markets, and sells ready-to-eat, chilled and frozen merchandise below a variety of manufacturers — together with Kronfågel, Danpo, Den Stolte Hane, Manor Farm, and Naapurin Maalaiskana. The group’s Norwegian enterprise additionally produces and sells desk eggs. With a workforce of round 3,200, it generated gross sales of over 13 billion Swedish krona (SEK; 1.25 billion) within the final fiscal yr.
Annual slaughterings of over 177 million birds put Scandi Customary simply amongst the highest 20 largest poultry firms in Europe, in keeping with the WATTPoultry.com High Poultry Firms survey. The group additionally has round a million laying hens.
In its newest monetary report, the group experiences a year-on-year enhancements in working revenue and margins for the primary six months.
Inside the final month, Scandi Customary has introduced it had negotiated a five-year mortgage of SEK3.2 billion to assist the group’s future development.
