Swedish company Scandi Standard has announced it will acquire Manor Farm, the largest chicken producer in Ireland, valuing the firm at €94 million.
The initial payment, which is partly in the form of shares in Scandi Standard, also includes settlement of debt.
Manor Farm sources and processes around 50% of all fresh chicken sold in the Irish retail market and approximately 25% of all chicken consumed in the country.
It has around 130 farmers contracted as growers and 43 as breeders. It owns and operates a feed mill, which has revenues of 80 million and produces solely for its contracted growers. In total, the company employs around 850 people.
In a statement, Scandi Standard said it was attracted to Manor Farm because of its ‘profitable and well-run operations’. It also highlighted that the consumer market in Ireland is similar to the Nordic markets in terms of size, population and GDP.
Scandi Standard CEO Leif Bergvall Hansen said: “I am enthusiastic about the deal as Manor Farm satisfies all of our acquisition criteria. The company has profitability in line with our existing operations, is well run and is the clear market leader in chicken in the Irish retail market.
“With its capable and experienced management team, the business can be run with a high degree of autonomy whilst additional steps, which have been identified, can be taken to capture the benefits of best practice.
“As many of our risks are country specific, the acquisition is also likely to reduce our earnings volatility through diversification.”
Brothers Vincent and Justin Carton, who own 85% of Manor Farm, will continue to run the company and become shareholders in Scandi Standard.
Vincent Carton said: “We believe that Scandi Standard is the ideal partner, and we are delighted to have agreed a transaction structure that allows the current management to remain fully in place and that also allows the Carton family to become shareholders in Scandi Standard.
“We believe that this arrangement will serve our customers, employees, and suppliers well, and we look forward very much to the next chapter in the history of Manor Farm.”
In 2016 Manor Farm had net revenues of €164 million and earnings before interest, tax, depreciation and amortisation of €13 million.
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