Meat company HKScan has offloaded its processed meat and ready meals plant in Vantaa, Finland for almost €77 million and struck a long-term lease agreement.
The deal will see real estate investor Sagax Finland Asset Management purchase the land and buildings of HKScan’s Vantaa property.
Following the transaction, HKScan will instead lease the property for roughly €5 million a year and the firm’s net debt will be reduced by €10 million.
Under the terms of the agreement, the company can continue to develop its business in Vantaa for the following 20 years, with the option of additional years.
HKScan acquired the Vantaa plot in April 2020 from LSO Osuuskunta for €36 million, however the latest transaction also includes the buildings on the property.
The Vantaa unit manufactures 50 million kilos of meals and processed meat products annually and has up to 700 employees. HKScan’s brands include Via, Kariniemen and Pärsons and in 2019, it teamed up with Hes-Pro Oy to develop and launch plant-based products.
“We purchased the Vantaa plot of land in the spring 2020 to secure the continuity of our operations since the unit’s techno-economic life will continue well into the 2030s,” said HKScan CEO, Tero Hemmilä.
“We have been looking for expansion to the ownership base of the property and have reached the solution now announced, as it enables us long-term business development in Vantaa. The property sale also enables a significant reduction in the amount of HKScan’s interest-bearing loans, which expands the financing base for the company’s strategy implementation,” he added.
© FoodBev Media Ltd 2022
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