Swedish company acquires several poultry farms in our country
Swedish chicken food company „Scandi Standard“ has acquired the poultry business of the „Ziemeļ vilkas“ group in Lithuania for EUR 23.5 million.
Through the company „Scandi Standard Lithuania Holding“, registered in Lithuania, the Swedes bought several companies, including the meat processing company „Delikatesas“. Alfas Magnus Lagergren, a Swede, was appointed as its CEO as of 10 October.
„Scandi Standard“ announced on 8 October that it had completed the transaction and made all preparations to start operations in the coming weeks.
„This transaction is a significant step in strengthening the overall „Scandi Standard“ business and in achieving our financial goals. In addition, we have the best prospects to operate as a competitive, high-quality supplier," said Jonas Tunestal, CEO of „Scandi Standard“ in a company statement.
The company expects to produce 20–25,000 tonnes of products in 2025.
On 14 October, „Scandi Standard Lithuania Holding“ was registered as the owner of „Delikatesas“ in the Register of Legal Entities. It bought the shares from Vilius Kaikaris, the manager of „Skaistgirio skaldos“, „Biometana“ and „Šiaurės vilkas“, which were owned by Palmyra Kaikarienė.
The first to report the news was the „Verslo žinios“ portal.
V. Kaikaris told BNS on Tuesday that he could not say what other companies the Swedish company had bought, citing confidentiality reasons. In August, he confirmed to vz.lt that „Scandi Standard“ was buying four companies related to the group's poultry business.
„Scandi Standard“ announced in August that the deal includes a poultry farm with an annual capacity of 6–8,000 tonnes, plots of land suitable for the construction of poultry farms and an option to acquire land for further expansion. In addition to the purchase price, the company intends to invest a further EUR 5–7 million in working capital and additional equipment.
In addition, „Scandi Standard“ aims to increase its poultry farming capacity by purchasing additional poultry from a number of Lithuanian farmers.
According to Mr Tunestal, the acquired business will be loss-making for 6–12 months, but is expected to improve its performance later. The production is expected to reach 20,000 tonnes per year.
According to „Scandi Standard“, which operates in the Nordic countries and Ireland, it has annual sales of over €13 billion. Scandi Standard reports that its annual sales are worth SEK 1.13 billion (€1.13 billion). The company produces ready-to-eat, chilled and frozen products, and eggs are also produced and sold in Norway.
The Group employs more than 3,200 people.
Joniskis „Delikatesas“ made a loss in both 2022 and 2023 with a net loss of EUR 4.7 million and EUR 4 million respectively, and revenues of EUR 20.56 million and EUR 17.1 million respectively.
„Northern Wolf“ Group made a net profit of €1.6 million last year, compared to a loss of €2.2 million in 2022, on revenues of €32 million – an increase of 19% (€26.9 million in 2022 &ndash). According to the Centre of Registers, the group is directly controlled by Kaikaris' mother, P. Kaikarienė, who owns 100% of the shares.
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