March 12, 2010

HKScan subsidiary to acquire meat firm in Baltic region

Rigas miesnieks, part of Sweden's meat processor HKScan, plans to acquire 90.85% of shares in meat processing company, Jelgavas galas kombinats from the Masa capital partners Sidrabene and UPCF.

The deal will be examined by the Competition Council. Following the deal, both companies will continue to operate separately.

According to data from the market and advertising research company Nielsen, Rigas miesnieks has 22% of the market, while Jelgavas galas kombinats has 5.7%.

Rigas miesnieks is one of the main food production companies in Northern Europe, and one of the leaders in the Polish, Swedish, Baltic States and Polish markets.

Over the last three years, the meat product market share of Rigas miesnieks has grown by 6%, reaching a 22% share of a highly competitive market featuring more than 50 companies.

The company produces more than 200 different meat products - most significant product category is sausages, where the company holds a 48% market share.