HKScan Corporation, Stock Exchange Release, 3 April 2020, 14:15 (EET)
HKScan has purchased the plot of land of its Vantaa production unit
By decision of the company’s Board of Directors, HKScan has purchased the plot of land on which its factory and logistics centre are located in Vantaa. HKScan bought the plot of land from LSO Osuuskunta using the right of first refusal included in the land lease agreement. The purchase price was approximately EUR 36 million. HKScan has negotiated a funding arrangement with its financing banks to enable the purchase of the land.
Based on the related party relationship between HKScan and LSO Osuuskunta, the land transaction is defined as a related party transaction. The purchase price paid by HKScan corresponds to the offer LSO Osuuskunta received for the plot of land from a third party.
In Finland HKScan concentrated its capital region production in Vantaa in 1991. The factory was expanded in 2007, and in 2008, a logistics centre built on the site became operational and began serving HKScan’s customers across Finland. Some 50 million kilos of meals and processed meat products are produced in Vantaa annually and over 700 food industry professionals work there. Nearly 120 million kilos of products are delivered annually to customers through the logistics centre. The property owned by HKScan is also a workplace for external operators serving the food sector.
“For us, it is important to secure our operations in the current location in Vantaa for a long time to come. The techno-economic life of the Vantaa production unit and logistics centre will continue until the 2030s. In addition, the location in the capital region is important, close to customers and to a large part of Finnish consumers. The land in Vantaa is centrally located also in terms of the future development of the area for other purposes. The aim is to expand the ownership base of the land so that it can be developed further to meet the future needs. We intend to continue operating in the capital region also in the future. We have hundreds of food industry professionals in Vantaa making sure every day that consumers have Finnish, responsibly produced food,” says HKScan’s CEO Tero Hemmilä.
The land transaction between HKScan and LSO Osuuskunta will become final once the statutory three-month period for the right of first refusal of the City of Vantaa has expired.
Tero Hemmilä, CEO
CEO Tero Hemmilä, tel. +358 10 570 2012
SVP Communications Heidi Hirvonen, tel. +358 10 570 6072
HKScan’s target is to grow into a versatile food company. With over 100 years of experience, we make tasty, healthy and responsibly produced food responding to the needs of consumers and customers. For us at HKScan, responsibility includes the development of food production throughout the value chain, from farms to consumers. Our home markets cover Finland, Sweden, Denmark and the Baltics. Our nearly 7,000 HKScan professionals ensure tastier life - today and tomorrow. Our diverse product portfolio includes poultry, pork and beef, as well as meat products and meals. Our strong brands are HK®, Kariniemen®, Via®, Scan®, Pärsons®, Rakvere®, Tallegg® and Rose®. In 2019, net sales of the publicly listed HKScan totalled EUR 1.7 billion.
DISTRIBUTION: Nasdaq Helsinki, key media, www.hkscan.com