The divestment of HKScan’s Baltic businesses completed

HKScan Corporation, Press Release, 31 August 2023 at 5.15 p.m. Finnish time

HKScan and AS Maag Grupp have today closed the previously announced transaction whereby HKScan will sell its Baltic businesses to the Estonian AS Maag Grupp. The transaction involved the shares of AS HKScan Estonia, AS HKScan Latvia and UAB HKScan Lietuva, the subsidiaries constituting HKScan's Business Unit Baltics. The debt-free purchase price was EUR 90 million, of which EUR 20 million is conditional on the combined performance of the separately defined meat business subject to the transaction and Maag Grupp's Baltic meat business in the following years. Of the EUR 70 million fixed purchase price, EUR 55 million was paid at the closing of the transaction and the remainder will be paid over the next three years. 

With the transaction, HKScan's ownership of its Baltic businesses has ended. The businesses and personnel of HKScan’s Baltic subsidiaries were 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 HKScan’s ability to improve its production efficiency and execute its long-term strategy of growing into a versatile food company.  

The transaction has also changed HKScan’s structure and financial key figures. This has been included in the company's financial reports from the beginning of 2023. Upon closing, the net gearing decreased by approximately 18 percentage points and, as a result of subsequent payments of the fixed purchase price, will decrease by an additional 5 percentage points. 

The 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 was some 1,500. HKScan operated in the Baltics since the summer of 1998. 

Details of the transaction have been previously disclosed in stock exchange releases: 13 December 2022 and 24 July 2023.

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]