DECISION TO COMBINE THE OPERATIONS OF MILDOLA AND AVENA
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE 14 August 2009, 8.30 am
DECISION TO COMBINE THE OPERATIONS OF MILDOLA AND AVENA
The Lännen Tehtaat Group has decided on a new intra-Group ownership arrangement
whereby Lännen Tehtaat plc will sell the entire share capital of its vegetable
oils company, Mildola Oy, to its trading specialist in grains, oilseeds and
feeding stuffs, Avena Nordic Grain Oy. The aim of this is to combine the
commodity market expertise of Avena Nordic Grain with Mildola's expertise in oil
milling. The intention is to achieve annual synergy benefits of approximately
EUR 0.5 million.
The new arrangement will be introduced in two stages. At the first stage, the
administration, purchasing, sales and logistics functions of Mildola Oy will be
transferred to Avena Nordic Grain Oy. This outsourcing of Mildola's functions
will entail the transfer of nine of its employees to Avena. The second stage
will be the asset deal taking place towards the end of the year, when Mildola
Oy's vegetable oils business, excluding its oil milling operation, will be
transferred to Avena Nordic Grain Oy, leaving Mildola Oy to continue its oil
milling operation as a production unit of Avena. The new arrangement is expected
to give rise to non-recurring costs of about EUR 0.1 million, which will be
entered in the third-quarter result.
Since the vegetable oils business will no longer form a separate entity for
monitoring purposes, the former Grain Trading and Vegetable Oils segments will,
from the start of the third quarter, appear in the Group's financial reporting
under a new segment name, Grains and Oilseeds. The operating segment data for
the period Q1/2008 to Q2/2009 based on the new segment structure will be
published today as a separate stock exhcange release.
The Grains and Oilseeds business will be the responsibility of Avena Nordic
Grain Oy's Managing Director, Kaija Viljanen, who, as of 14 August 2009, will
also be Managing Director of Mildola Oy.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
Further information: Matti Karppinen, CEO, tel. +358 10 402 4001
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