Swedish company Scandi Standard is the largest producer of chicken-based food products in the Nordic region; Sweden, Denmark, Norway and Finland. The company produced approximately 130m chickens in 2016, had a net sales of 6,000 MSEK (€613m) and 1,700 employees.

It produces, markets and sells ready-to-eat, chilled and frozen products under the brands Kronfågel, Danpo, Den Stolte Hane and Naapurin Maalaiskana.

The company was created by gathering the largest poultry operations in the Nordic region into one collective group. At present, the group has an annual turnover of approximately SEK 5.2bn (€0.53bn).

Headquartered in Stockholm, its five main facilities are in Valla (Sweden), Ars and Farre (Denmark), Naerbo/Jaren (Norway) and Lieto (Finland).

Growth

“Scandi Standard’s strategy for profitable growth is to drive organic growth, increase the cost-effectiveness and make strategic acquisitions and partnerships,” a statement from the company about the acquisition of Manor Farm reads.

Scandi Standard identifies a similarity between the Nordic poultry market it works in and the Irish one; both are well consolidated with a few ‘‘players of scale’’. It also identified that like in the Nordic markets “there is a strong preference for domestic produce in the retail channel, and the fresh segment is well-developed” in Ireland.

Value

In 2014, Scandi Standard was introduced on the Stockholm stock market. The deal announced this week values Manor Farm at €94m based on the Swedish company’s closing share price as of SEK 52.5 (€5.37) on 26 June.

The settlement is agreed to consist of the Consideration Shares, equivalent to 9.99% of the current share capital of Scandi Standard.

This means that completion of the transaction is subject to approval of the issuance of the consideration shares at an extraordinary general meeting of shareholders of Scandi Standard.

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’No one has bought Manor Farm to lose money’