SWEDEN: HKScan sells stake in Swedish meats group
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.
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
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