SWEDEN: HKScan sells stake in Swedish meats group

By Katy Askew | 3 January 2014

HKScan simplifies Swedish operations

HKScan simplifies Swedish operations

Finland-based food group HKScan has struck a deal to sell its 49% stake in Swedish meat firm Nyhléns & Hugosons Chark.

Alviksgården Lantbruks, a Swedish meat processor, will pay HKScan EUR2.2m (US$3m) in cash for HKScan's holding in Nyhléns & Hugosons Chark.

The transaction will result in an asset impairment charge for HKScan of EUR2.1m, which it will report as a one-off cost falling in the fourth quarter of 2013.

The move comes as part of HKScan's turnaround process, which has seen it reorganise corporate functions and reduce complexity to strip out costs, while focusing its efforts on its leading regional brands. In Sweden, HKScan said it aims to "streamline" its business structure to reduce costs and concentrate its resources behind its leading Scan and Pärsons brands.

Nyhléns & Hugosons Chark generates sales of SEK500m (US$77.2m) and has four plants in Sweden.

Show the press release

HKScan to sell its share in Nyhléns & Hugosons Chark AB

As part of its development programme and strategy review in Sweden, HKScan sells its 49 percent stake in Nyhléns & Hugosons Chark AB to Alviksgården Lantbruks AB.

The agreement was signed on 2 January 2014. After the transaction is completed, all Nyhléns & Hugosons Chark AB shares previously owned by HKScan will be transferred to Alviksgården Lantbruks AB. The sales price amounted to EUR 2.2 million which was paid in cash. The transaction caused an asset impairment of EUR 2.1 million which will be reported as a non-recurring cost in the fourth quarter of 2013.

Nyhléns & Hugosons Chark AB is engaged in the meat and processed meats business. The company's net sales are approximately SEK 500 million (EUR 50 million) and it employs 230 people and has plants in Luleå, Alvik, Skellefteå and Ullånger.

HKScan's aim is to streamline its business structure in Sweden, continue its brand and product offering development and raise the added-value of its products. The Scan brand is the local market leader and one of the best-known consumer brands in Sweden. Pärsons brand is the leading brand in e.g. cold cuts.

Original source: HKScan

Sectors: Meat & poultry, Mergers & acquisitions

Companies: HKScan

View next/previous articles

Currently reading -

SWEDEN: HKScan sells stake in Swedish meats group

There are currently no comments on this article

Be the first to comment on this article

Related research

HKScan Corporation : Consumer Packaged Goods - Company Profile, SWOT & Financial Report

"HKScan Corporation : Consumer Packaged Goods - Company Profile, SWOT & Financial Report" contains in depth information and data about the company and its operations. The profile contains a company overview, key facts, major products and services, SW...

Global Meat Market: Merger and Acquisitions February 2014

The report provides a review of the mergers and acquisitions (M&As), partnering deals, and agreements entered into by companies active in the global meat market during February 2014....

Global Meat Market: News and Events December 2013

The report provides a review of the latest news and key events in the global meat market during December 2013. Summary Using this report, marketers will effectively gain an insight into the latest happenings in the global meat market throughout the ...

Related articles

FINLAND: HKScan outlines responsible soy sourcing plan

Finland-based meat supplier HKScan has become a member of the Round Table on Responsible Soy.

ESTONIA: HKScan to merge Estonian businesses

HKScan has indicated that it plans to merge its two Estonian business units following on from its drive to simplify and streamline its regional operations.

FINLAND: Swedish plant to close as HKScan continues revamp

Finland-based meat products group HKScan has said a plant in Sweden will close as part of plans to restructure its manufacturing network in the country.

Welcome to the home of food information, insight & intelligence

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page