Nordic meat group Scandi Standard has acquired a majority stake in Danish chicken processor Rokkedahl Foods through its Danish subsidiary Danpo.
The deal sees Scandi buy 51% of the firm, while the Rokkedahl family will continue to own around 49%.
Rokkedahl Foods’ production facility will continue to be owned by the Rokkedahl family and will be rented by Rokkedahl Foods at market terms.
Pursuant to an agreement with the Rokkedahl family, Danpo has been granted an option to acquire the remaining 49% in Rokkedahl Foods in 2023.
While Rokkedahl Foods will be consolidated by Scandi Standard, the investment is not expected to have any material effects on Scandi Standard’s net sales, net operating income and net cash flow.
“I am pleased by the investment in Rokkedahl Foods, which will serve as a great platform to rapidly develop the segment for organic and free-range chicken,” said Scandi Standard CEO Leif Bergvall Hansen.
“Rokkedahl Foods carries out the sale of such welfare chickens under the brands Rokkedahl Kylling, Himmerland Kylling and Limfjordskylling. Rokkedahl Foods operates a brand new and modern slaughterhouse, which is ideally structured for processing of organic and free-range birds.
“Danpo will hence transfer all its existing processing of such chicken to Rokkedahl Foods following the investment.”
The investment, which is not subject to any approvals from authorities, is expected to close on 1 September 2018.
Scandi Standard produces chicken-based food products in the Nordic region and Ireland under brands such as Kronfågel, Danpo, Den Stolte Hane and Naapurin Maalaiskana.
Last year it bought Manor Farm, the largest chicken producer in Ireland, in a deal worth €94 million.
© FoodBev Media Ltd 2018