Finnish food producer exits Baltic States

HKScan has announced it will sell its Estonian, Latvian and Lithuanian subsidiaries to Maag Grupp of Estonia.

The total consideration is €90m, of which €70m is fixed and €20m conditional on the performance. Of the €70m, €55m is payable on closing and the remainder over 3yrs.

The disposed businesses have been loss making and will allow Helsinki listed HKScan to strengthen its balance sheet. Maag will acquire critical mass in its meat business.

The transaction requires regulatory clearance and is targeted to close in H2 2023.