Danish Crown to take full control of Polish meat firm Sokolów

Danish food processing company Danish Crown is set to take full control of Polish meat firm Sokolów through the acquisition of HKScan’s 50% holding in the meat firm in a €180m all-cash deal.

In 2004, Danish Crown and Finnish meat products manufacturer HKScan established Saturn Nordic Holding, a 50-50 joint venture, and acquired Sokolów.

During the cooperation, the acquired entity has been profitable and growing, benefiting both firms.

Sokolów specialises in the production of sausages, cold cuts and other processed meat products, and also has a large cattle slaughterhouse business in Poland, and a leading pig slaughterhouse business.

The company has a workforce of 6,500 at its seven facilities and reported revenues of DKK5.5bn for the fiscal 2013.

The acquisition is in line with Danish Crown’s strategy to strengthen its processing activities, and complements the company’s processed meat products division, DC Foods.

Danish Crown CEO Kjeld Johannesen said, "For the past ten years, we have enjoyed an excellent working relationship with HKScan and have realised fantastic growth in both revenue and earnings."

HKScan president and CEO Hannu Kottonen said that the deal is positive for all parties.

Kottonen added, "We continue building HKScan as one strong Nordic Group focusing on branded meat business.

"The deal resulting in strong balance sheet and lower net financial costs will improve our prerequisites for speeding-up the strategic work to invest in our strong brand offering as well as on related production facilities and technologies."

The transaction, which is subject to the receipt of regulatory approvals, is expected to provide HKScan with a dividend corresponding to PLN35m for 2013, and the company is expected to report capital gain of €67m.

HKScan will continue to run its domestic operations through HKScan Poland in Swinoujscie.

The company offers pork, beef, poultry and lamb products, processed meats and convenience foods to retail, food service, industrial segments and exports to around 50 countries.