Scandi Standard (SCST SS) invests in a 51% stake in Rokkedahl Foods ApS facilitating an accelerated roll-out of premium birds in Denmark
Scandi Standard AB (publ) has entered into an agreement to subscribe for approximately 51% of the shares in Rokkedahl Foods ApS (Rokkedahl Foods) through its Danish subsidiary Danpo A/S (Danpo).
“I am pleased by the investment in Rokkedahl Foods, which will serve as a great platform to rapidly develop the segment for organic and free-range chicken. Rokkedahl Foods carries out the sale of such welfare chickens under the brands Rokkedahl Kylling, Himmerland Kylling and Limfjordskylling. Rokkedahl Foods operates a brand new and modern slaughterhouse, which is ideally structured for processing of organic and free-range birds. Danpo will hence transfer all its existing processing of such chicken to Rokkedahl Foods following the investment.” says CEO of Scandi Standard Leif Bergvall Hansen in a statement.
The Rokkedahl family, which will continue to own approximately 49% of Rokkedahl Foods, has produced chickens since 1963 in Kølby in Himmerland (25 km from Danpo in Aars). The Rokkedahl family also operates Rokkedahl Landbrug, which supplies live chickens to processors including Rokkedahl Foods, and certain other businesses.
Rokkedahl Foods’ production facility will continue to be owned by the Rokkedahl family and will be rented by Rokkedahl Foods at market terms. Pursuant to an agreement with the Rokkedahl family, Danpo has been granted an option to acquire the remaining 49% in Rokkedahl Foods in 2023 based on an EBITDA multiple of 6. No material price is paid for the subscribed shares. Danpo has however agreed to guarantee certain of Rokkedahl Foods’ interest-bearing debts and leasing obligations in a total amount of approx. DKK 56 million.
The investment, which is not subject to any approvals from authorities, is expected to close on 1 September 2018. While Rokkedahl Foods will be consolidated by Scandi Standard, the investment is not expected to have any material effects on Scandi Standard’s net sales, net operating income and net cash flow, but will accelerate the implementation of a premium concept in Denmark and give access to the new processing plant that is ideally structured for processing of organic and free-range birds.
For further enquiries, please contact,
Leif Bergvall Hansen, CEO (+45 22 10 05 44)
Henrik Heiberg, Head of M&A, Financing and IR (+47 91 74 77 24)
About Scandi Standard
Scandi Standard is the leading producer of chicken-based food products in the Nordic region and Ireland. The company produces, markets and sells ready to eat, chilled and frozen products under the well-known brands Kronfågel, Danpo, Den Stolte Hane, Naapurin Maalaiskana and Manor Farm. In Norway eggs are also produced and sold. The group has approximately 3 000 employees and have a total sales of more than SEK 7,5 billion. For more information, please visit www.scandistandard.com.
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