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HKScan and AS Maag Grupp have immediately closed the beforehand introduced transaction whereby HKScan will promote its Baltic companies to the Estonian AS Maag Grupp. The transaction concerned the shares of AS HKScan Estonia, AS HKScan Latvia and UAB HKScan Lietuva, the subsidiaries constituting HKScan’s Enterprise Unit Baltics. The debt-free buy worth was EUR 90 million, of which EUR 20 million is conditional on the mixed efficiency of the individually outlined meat enterprise topic to the transaction and Maag Grupp’s Baltic meat enterprise within the following years. Of the EUR 70 million mounted buy worth, EUR 55 million was paid on the closing of the transaction and the rest shall be paid over the following three years.
With the transaction, HKScan’s possession of its Baltic companies has ended. The companies and personnel of HKScan’s Baltic subsidiaries had been transferred to the brand new proprietor on the closing of the transaction. Sale of the Baltic companies will enhance HKScan’s profitability and strengthen its steadiness sheet. As well as, the divestment will improve HKScan’s skill to enhance its manufacturing effectivity and execute its long-term technique of rising into a flexible meals firm.
The transaction has additionally modified HKScan’s construction and monetary key figures. This has been included within the firm’s monetary stories from the start of 2023. Upon closing, the web gearing decreased by roughly 18 share factors and, because of subsequent funds of the mounted buy worth, will lower by an extra 5 share factors.
The Baltic manufacturing items are positioned in Rakvere, Tabasalu and Viiratsi in Estonia and Jelgava in Latvia. The corporate’s client manufacturers within the Baltics are Rakvere, Tallegg, Rigas Miesnieks, Jelgava and Klaipedos Maistas. In 2022, web gross sales for the Baltic companies amounted to EUR 195.7 million (2021: EUR 170.0 million), EBIT was EUR -30.2 million (2021: EUR -3.6 million) and the typical variety of staff within the three international locations was some 1,500. HKScan operated within the Baltics because the summer season of 1998.
Particulars of the transaction have been beforehand disclosed in inventory change releases: 13 December 2022 and 24 July 2023.
August 31, 2023 – HKScan
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