HKScan's strategy implementation continues - Estonian egg business to be divested, HKScan to become a minority shareholder in Finnish hatchery joint venture
HKScan Corporation Stock Exchange release 19 December 2014, at 10:00
HKScan’s strategy implementation continues – Estonian egg business to be divested, HKScan to become a minority shareholder in Finnish hatchery joint venture
HKScan, a leading Nordic meat company, has signed an agreement to sell its Estonia’s egg business, OÜ Koks Munatootmine, to Danish DAVA Foods Holding A/S. OÜ Koks Munatootmine has annual net sales EUR 6,7 million. The deal comprises shares as well as property and facilities and will result in a minor non-cash write-off. The divestment is subject to the approval of the competition authorities. Employees of the egg business will continue to work for OÜ Koks Munatootmine.
“DanHatch has a solid track record in the hatchery business in Northern Europe and we are pleased to have a business partner that is highly dedicated to the business. This will benefit our poultry value chain and our producers. Further development and investments are required in order to meet the growing market demand for poultry products,” says Hannu Kottonen, President and CEO of HKScan. “As announced in October 2014, the poultry business is a strategic development area for HKScan, and we plan to invest in a new production facility in Finland. Ensuring high-quality and cost-efficient hatchery operations is therefore very important for us.”
Both transactions will free up capital. They will involve approximately 60 employees in total.
“These deals are further steps in our efforts to rationalize our operations, focus on our core business, improve our productivity and further simplify and clarify the Group structure. The changes allow us to further strengthen our position as the leading Nordic meat company,” says Kottonen.
For further information:
Hannu Kottonen, CEO, HKScan Group
Kindly submit a callback request via: Marja-Leena Dahlskog, SVP Communications, tel. +358 10 570 2142
HKScan is the leading Nordic meat expert. We sell, market and produce high-quality, responsibly-produced pork, beef, poultry and lamb products, processed meats and convenience foods under strong brand names. Our customers are the retail, food service, industrial and export sectors, and our home markets comprise Finland, Sweden, Denmark and the Baltics. We export to close to 50 countries. HKScan’s net sales is EUR 2.1 billion and we have some 7 700 employees, making us one of the Europe’s leading meat companies.
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