Nordhaven advised HKScan Corporation in the sale of its Baltic business unit to Maag Grupp

29 dec 2022

Nordhaven advised HKScan in the divestment of its Baltic business area to Estonian Maag Grupp. HKScan is a Northern European food company with several heritage brands in the Nordics. The sale of HKScan's business in the Baltics is expected to be finalized in the second half of 2023, subject to regulatory approvals in Estonia and Latvia. The debt-free purchase price is EUR 90 million, of which EUR 20 million is conditional on the combined performance of the separately defined meat business, subject to the transaction and Maag Grupp's Baltic meat business in the following years.

HKScan's consumer brands in the Baltics are Rakvere, Tallegg, Rigas Miesnieks, Jelgava and Klaipedos Maistas. The company's production units are located in Rakvere, Tabasalu and Viiratsi in Estonia, and Jelgava in Latvia. In 2021, HKScan's net sales for the Baltic business amounted to EUR 170 million (Q1-3/2022: EUR 143.6 million), EBIT was EUR -5.4 million (Q1-3/2022: EUR -26.6 million) and the average number of employees in the three countries was some 1,500. HKScan has operated in the Baltics since the summer of 1998.

Maag Grupp is an over 25 years old Estonian food company operating in the meat and dairy business. Maag's net sales in 2021 totaled EUR 233 million and it employed some 1,000 people in Estonia, Poland and Finland. The company is known for its consumer brands Tere, Farmi, Deary, Rannarootsi, Rannamõisa and Pouttu.

"We thank Nordhaven for very well executed transaction process. Nordhaven's knowledge of the food industry, as well as cross-border and public M&A, were essential in order to achieve the transaction and financial result", says HKScan's Markku Suvanto, EVP, Administration and Legal.

"Nordhaven has been very active, long term, in the food sector and we are especially pleased to succeed with this transaction under the very challenging current market conditions", says Ari Leppänen, Partner at Nordhaven.

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