September 10, 2010

Finland's HKScan to buy Rose Poultry

Finnish food group HKScan has set sights on becoming one of the largest poultry processors in northern Europe with the announcement of a deal to buy Denmark's Rose Poultry.

HKScan said that the planned acquisition of Rose Poultry, which had sales of EUR200 million (US$254 million) in fiscal 2008/09, would see its poultry operations expand to Denmark and Sweden. HKScan already has poultry businesses in Finland and the Baltic states.

The acquisition remains subject to anti-trust approval but HKScan said it would pay EUR23.9 million (US$30.4 million) in a cash-and-shares agreement.

HKScan is paying up to EUR15.9 million (US$20.2 million) in cash and is issuing up to one million shares in its own business to Rose Poultry.

"HKScan will become one of the leading players in the poultry market in northern Europe. Rose Poultry's strategic suitability for HKScan is excellent and it will constitute an important step in the development of the company's poultry business," the company said.