Atria to expand in Estonia through acquisition of two meat processing companies
Atria Plc COMPANY ANNOUNCEMENT 26 JUNE 2008, 6.10 PM
ATRIA TO EXPAND IN ESTONIA THROUGH ACQUISITION OF TWO MEAT PROCESSING COMPANIES
Atria will boost its growth in Estonia by acquiring meat processing companies AS
Woro Kommerts and AS Vastse-Kuuste Lihatööstus. The deal covers 97.7% of the AS
Woro Kommerts stock. The companies are well-known manufacturers of a variety of
high-quality meat products and consumer-packed meat. Through these acquisitions,
Atria will complete and expand its current product range for retail customers in
Estonia.
Established in 1993, AS Woro Kommerts is a company specialising in the
production of meat products. Woro's product portfolio includes smoked sausages
and meat products, cooked sausages, grill sausages and frankfurters. The
company's total market share in terms of value is 13% (source: AC Nielsen 2008),
which makes it Estonia's second largest meat processing company. In recent
years, Woro has been investing actively in the development of product quality
and brands. In 2007, it posted net sales of EUR 9.9 million and employed some
170 staff. The company has a production plant in Ahja, near Tartu and a
distribution centre in Tartu. Built at the turn of the century, the production
plant boasts modern production machinery.
AS Vastse-Kuuste Lihatööstus manufactures a range of cold cuts, sausages, dried
sausages and consumer-packed meat. The company has its own slaughterhouse and
cutting plant. Founded in 1994, Vastse-Kuuste reported net sales of EUR 8.8
million in 2007. Its total market share in terms of value is 6% (source: AC
Nielsen 2008), and it employs approximately 140 people. In recent years,
Vastse-Kuuste has been investing in the modernisation and capacity increase of
the production plant. Its market position has also strengthened due to the new
investments. The company has a particularly strong position in cold cuts in the
Estonian market. The production plant is located in southern Estonia, in
Vastse-Kuuste.
In 2005, Atria acquired Estonian meat processing company AS Valga Lihatööstus,
whose net sales for 2007 were EUR 23.2 million. Combined with the operations of
Woro and Vastse-Kuuste, AS Valga Lihatööstus is going to be the second largest
player in the Estonian meat processing market, with net sales of approximately
EUR 42 million. The combination will generate significant synergies and help
establish a firmer foothold in the market.
In 2007, Atria invested roughly EUR 7 million in increasing the capacity and
cost-efficiency of the Valga production plant, and in developing primary
production. Furthermore, Atria has heavily invested in product development and
marketing. Through its new acquisitions, Atria will create good conditions for
growth both in Estonia and throughout the Baltics.
The closing of the deal is subject to the approval of the Estonian competition
authorities. This is anticipated to take place by the end of July. Atria
estimates that the process of consolidating the new companies will begin on 1
August 2008. The parties have agreed not to make the purchase price public.
For additional information, please contact Mr Matti Tikkakoski, President & CEO
of Atria Plc, tel. +358 50 2582.
ATRIA PLC
Matti Tikkakoski
President and CEO
DISTRIBUTION
Helsinki Stock Exchange
Principal media
www.atria.fi
