Inside information: Estonian Competition Authority approves AS Maag Grupp’s acquisition of HKScan's Baltic businesses

HKScan Corporation, Stock Exchange Release, Inside information, 24 July 2023, at 17:00 Finnish time

HKScan has been informed that the Estonian Competition Authority has approved the arrangement announced in December 2022 whereby HKScan will sell its businesses in the Baltics. HKScan and AS Maag Grupp, the acquirer of the businesses, intend to close the transaction in the third quarter of 2023. The purchaser has undertaken certain post-closing obligations in connection with the transaction. The Latvian Competition Authority already approved the transaction unconditionally in February.

On 13 December 2022, HKScan announced that it had signed an agreement to sell its Baltic businesses to Estonian AS Maag Grupp (HKScan Corporation, Stock Exchange Release 13 December 2022). 

With the transaction, HKScan's ownership of its Baltic businesses will end. The businesses and personnel of HKScan’s Baltic subsidiaries will be transferred to the new owner at the closing of the transaction.

“Sale of the Baltic businesses will improve HKScan's profitability and strengthen its balance sheet. In addition, the divestment will enhance our ability to improve our production efficiency and implement our long-term strategy to grow as a versatile food company”, says Juha Ruohola, CEO of HKScan.

HKScan’s Baltic production units are located in Rakvere, Tabasalu and Viiratsi in Estonia and Jelgava in Latvia. The company’s consumer brands in the Baltics are Rakvere, Tallegg, Rigas Miesnieks, Jelgava and Klaipedos Maistas. In 2022, net sales for the Baltic businesses amounted to EUR 195.7 million (2021: EUR 170.0 million), EBIT was EUR -30.2 million (2021: EUR -3.6 million) and the average number of employees in the three countries is approximately 1,500. HKScan has operated in the Baltics since the summer of 1998.

HKScan Corporation

Juha Ruohola, CEO

Further information:

• Juha Ruohola, CEO, HKScan Corporation, tel. +358 400 647 160
• Jyrki Paappa, CFO, HKScan Corporation, tel. +358 50 556 6512
• HKScan Media Service Desk, tel. +358 10 570 5700 or by email: [email protected]