Swedish agri-food group Lantmännen is increasing its footprint in Finland with an agreement to buy grain-based food business Myllyn Paras from Finnish investor Sponsor Capital.

The deal, for an undisclosed sum, is subject to the approval of the Finnish Competition and Consumer Authority. Until then, Lantmännen and Myllyn Paras will continue to operate as separate companies.

Myllyn Paras operates two factories in Hyvinkää – a mill which produces pasta, flour and flakes, and a bakery for frozen bakery goods and dough.

The company supplies the domestic retail and foodservice channels with frozen bakery goods and also flour, flakes, bran, rice and pasta.

Its net sales amount to approximately EUR60m (US$70.4m) and it employs around 110 people.

Lantmännen already has an established position in the Finnish market through Lantmännen Agro Oy in the agriculture area, and food producers Lantmännen Unibake Oy, Vaasan Oy (both part of Lantmännen Unibake) and Lantmännen Cerealia Oy.

Per Olof Nyman, the Swedish firm’s president and CEO, said: “With this acquisition we expand our presence in the Finnish market, well in line with our strategic ambitions to enhance our position in Northern Europe.

“Milling and baking are part of Lantmännen’s core operations globally, making Myllyn Paras an excellent addition to current businesses in Finland. The offering of Myllyn Paras complements ours in several areas, which paves the way for innovation from field to fork, and a broader product offering that is beneficial for both customers and consumers.”

Miska Kuusela, CEO of Myllyn Paras, said: “The acquisition will further improve our abilities to serve our customers and consumers. We are two companies which share extensive experience and profound knowledge of developing excellent food products based on grains, and dedicated and competent employees, which are both key success factors in joining forces going forward.”