Swedish chicken processing company Scandi Standard has announced that it has entered into an agreement to acquire Manor Farm, the largest chicken processor in Ireland.
The €70m settlement will be a combination of 6m Scandi Standard shares (consideration shares), an earn-out mechanism, cash and the assumption of outstanding interest-bearing debt. Completion of the transaction is subject to approval of the issuance of the consideration shares at an extraordinary general meeting of Scandi Standard.
However, the company said that the four largest shareholders, representing approximately 29% of Scandi Standard’s share capital, support the transaction.
Cavan
The Manor Farm processing plant is in Shercock, Co Cavan. It has approximately 130 farmers contracted as growers and approximately 43 contracted as breeders. It employs 850 people. It owns and operates a feed mill, which has revenues of approximately €80 million and produces solely for its contracted growers.
The family business was founded in 1775, and the current CEO is the eighth generation of the family.
the next generation of Cartons have chosen to pursue other business interests
“My brother Justin and I have been determined to find a partner that can continue to build on our strong relationships with customers, employees, suppliers and the broader communities in which we operate,” Vincent Carton, CEO of Manor Farm, said. “ As the next generation of Cartons have chosen to pursue other business interests.”
The consumer market in Ireland is similar to the Nordic markets in terms of size, population and GDP.
“With its capable and experienced management team, the business can be run with a high degree of autonomy whilst additional steps, which have been identified, can be taken to capture the benefits of best practice,” Leif Bergvall Hansen, CEO of Scandi Standard, said. “As many of our risks are country specific, the acquisition is also likely to reduce our earnings volatility through diversification.”
Scandi Standard
Scandi Standard is the largest producer of chicken-based food products in the Nordic region, producing 130m chickens last year. It operates in Sweden, Denmark, Norway and Finland. The company produces, markets and sells ready-to-eat, chilled and frozen products under the brands Kronfågel, Danpo, Den Stolte Hane and Naapurin Maalaiskana.