HKScan to sell Swedish business to Lantmännen

HKScan Corporation has entered into an agreement to sell its Swedish subsidiary, HKScan Sweden AB, to the Swedish cooperative Lantmännen ek för. The purchase price is approximately EUR 60 million in cash, along with Lantmännen’s shares in HKScan Corporation. Lantmännen will also repay an intragroup loan of approximately EUR 50 million to HKScan.

The divestment is expected to strengthen HKScan's balance sheet and allow the company to better focus on its remaining businesses and implement its long-term strategy. The Polish bacon unit, previously part of the Sweden Business Unit, will be reported under the Finland Business Unit going forward. In 2022, HKScan's net sales for continuing operations were EUR 1,097.5 million, and the company anticipates further net sales growth in 2023.

HKScan's Swedish production facilities are located in Linköping, Kristianstad, Skara, and Halmstad. The Swedish business generated net sales of EUR 736.2 million in 2022 and employed approximately 1,800 people. The transaction is subject to approval from the European Commission and Swedish foreign direct investment authorities, with completion expected in the first half of 2024.

Lantmännen is an agricultural cooperative with operations in the agricultural, machinery, bioenergy, and food industries across Northern Europe. It has a net sales of EUR 5.6 billion and is owned by 18,000 Swedish farmers. Lantmännen views the acquisition as strategically important for expanding its business portfolio and strengthening the competitiveness of Swedish agriculture.