Inside information: HKScan to sell its Danish business
HKScan Corporation, Stock Exchange Release, Inside information, 2 May 2024 at 3.45 p.m. Finnish time
HKScan has signed an agreement to sell the shares of its Danish subsidiary HKScan Denmark A/S to Plukon Food Group B.V. from the Netherlands. The debt-free purchase price is EUR 44.6 million.
"The sale of the Danish business will continue to strengthen company's balance sheet and allow us to better focus on our remaining businesses. Following the decision to sell the Danish business, the assessment of the group structure has been completed for now. We are strongly Finnish at our core but remain an internationally operating listed company. We will now focus on improving the competitiveness and profitability of our core operations and continue to implement our long-term strategy to become a yet more versatile food company", says HKScan's CEO Juha Ruohola.
The transaction will further change HKScan’s structure and financial key figures. As from HKScan’s Q1/2024 Interim Report, the Danish business will be classified as assets and liabilities held for sale and presented as discontinued operations.
In 2023, HKScan’s net sales for continuing operations (Finland including the Polish bacon unit and Denmark) totalled EUR 1,163 million, EBIT was EUR 17.4 million and comparable EBIT EUR 14.9 million. As of the Q1/2024 Interim Report, the Group measures assets and liabilities held for sale related to the Danish businesses at fair value less costs to sell. The Group will recognise an impairment of approximately EUR 11 million on the value of the Danish business. The transaction increases the Group's net gearing ratio at end of Q1/2024 by around 5 percentage points.
The transaction is expected to close during 2024 and will be subject to approval by the Danish competition authorities. At closing, the cash portion of the purchase price, estimated at approximately EUR 35 million, will be paid in a one-off payment. As a result of this and the liabilities to be transferred, the net debt ratio is expected to decrease by approximately 16 percentage points.
HKScan’s Danish production units are based in Vinderup and Skovsgaard. The company’s consumer brand in Denmark is Rose. In 2023, the Danish business had net sales of EUR 230 million, comparable EBIT of EUR 3.3 million and approximately 680 employees on average. HKScan has operated in Denmark since 2010.
The Dutch Plukon Food Group has 34 production units in six different countries and employs around 9,500 people. The company’s product range includes poultry, meals and salads, meal components and alternative proteins. The company’s net sales in 2023 were EUR 3.1 billion.
“With the acquisition of HKScan Denmark A/S, we proudly welcome Denmark as our seventh home country. This strategic move not only aligns perfectly with our growth ambitions, but also provides Plukon Food Group with the opportunity to expand our market presence for poultry, meals and alternatives throughout the Nordics” says Kees Kraijenoord, CEO of Plukon Food Group.
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 [email protected]
With 110 years of experience, we at HKScan make life tastier – today and tomorrow. Our strategic target is to grow into a versatile food company. Our home markets are Finland and Denmark, where around 3,600 of our professionals make responsible and locally produced food for consumers’ varied food moments. Our well-known brands include HK®, Kariniemen®, Via® and Rose®. We are developing a more climate-friendly way of producing food. HKScan is a publicly listed company, and in 2023, our net sales from continuing operations totalled nearly EUR 1.2 billion. www.hkscan.com
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