The Estonian Competition Authority has approved the sale of HKScan’s Baltic business to AS Maag Grupp.
HKScan in December 2022 announced that it has reached an agreement with AS Maag, but the sale of the business was contingent upon regulatory approval in Estonia and Latvia. Latvian authorities already gave their approval to the sale in February.
With these approvals in place, HKScan expects the transaction to be finalized in the third quarter of 2023.
“Sale of the Baltic businesses will improve HKScan’s profitability and strengthen its balance sheet. In addition, the divestment will enhance our ability to improve our production efficiency and implement our long-term strategy to grow as a versatile food company,” said Juha Ruohola, CEO of HKScan.
HKScan’s 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.
All businesses and personnel of HKScan’s Baltic subsidiaries will be transferred to AS Maag upon the closing of the transaction.
When the sale is completed, it will bring an end to HKScan’s presence in the Baltics, where the company has operated since the summer of 1998.
According to a press release from HKScan, AS Maag has undertaken certain post-closing obligations in connection with the planned acquisition.
The previously announced purchase price was EUR90 million (US$95.7 million).
HKScan, according to data from the WATTPoultry.com Top Poultry Companies Database, slaughtered 93 million broilers during the past year. The company is headquartered in Finland. HKScan produces, sells and markets pork and beef, poultry products, processed meats and convenience foods.
