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HKScan Corporation has announced its decision to divest its Swedish subsidiary, HKScan Sweden AB, in a deal with Swedish agricultural cooperative Lantmännen ek för. Lantmännen, with net sales of €5.6 billion, is known for consumer brands such as Vaasan, Myllyn Paras, AXA, Start!, GoGreen and FINN CRISP. The transaction includes the sale of shares in HKScan Sweden AB for approximately €60 million in cash, along with the transfer of A and K shares in HKScan Corporation held by Lantmännen. Additionally, Lantmännen will settle an intragroup loan of around €50 million between HKScan Corporation and HKScan Sweden AB. To further streamline its financial structure, HKScan Corporation plans to reduce off-balance sheet factoring financing by about €55 million and IFRS 16 leasing liabilities by approximately €13 million. A prepayment of €25 million will be made upon signing the agreement, with the remaining balance to be paid at the closing of the transaction. The overall consideration, including shares, is valued at €5.5 million. Juha Ruohola, CEO of HKScan, said: "The divestment of the Swedish business will strengthen HKScan's balance sheet. In addition, the sale will allow us to better focus on our remaining businesses and implement our long-term strategy. We will continue to operate on our foundations as a strongly Finnish but internationally active listed company. Our market position is significant and we have strong brands. Our strategic goal is to grow into a versatile food company. ” The sale of the Swedish business will lead to changes in HKScan's financial reporting, with the Swedish operations classified as assets and liabilities held for sale and presented as discontinued operations in the 2023 financial statements. Notably, the Polish bacon unit, previously part of the Business Unit Sweden, will now be reported under the Business Unit Finland. The transaction is anticipated to close in the first half of 2024, contingent upon approval by the EU Commission and clearance by Swedish authorities for foreign direct investment control. HKScan’s Board of Directors will convene an Extraordinary General Meeting in early 2024 to seek approval for the transaction. Magnus Kagevik, Lantmännen’s group president and CEO, added: “This acquisition is strategically important for Lantmännen and for our members, active Swedish farmers. It broadens and strengthens our business portfolio and creates stronger long-term conditions for Swedish agriculture. Together with HKScan’s market-leading brands and knowledge, we see good opportunities for further developing our businesses.”