Scandi Standard to acquire 51% stake in Rokkedahl Foods

Ireland-based chicken food products producer Scandi Standard has signed an agreement to acquire a 51% stake in Rokkedahl Foods through its Danish subsidiary Danpo.

Financial details of the acquisition have not been disclosed by both the companies, but Danpo has agreed to guarantee certain interest-bearing debts and leasing obligations of Rokkedahl Foods, which could amount to nearly DKK56m ($8.7m).

Scandi Standard CEO Leif Bergvall Hansen said: “I am pleased by the investment in Rokkedahl Foods, which will serve as a great platform to rapidly develop the segment for organic and free-range chicken.

“Rokkedahl Foods carries out the sale of such welfare chickens under the brands Rokkedahl Kylling, Himmerland Kylling, and Limfjordskylling.

“Rokkedahl Foods operates a brand new and modern slaughterhouse, which is ideally structured for processing of organic and free-range birds.

“Danpo will hence transfer all its existing processing of such chicken to Rokkedahl Foods following the investment.”

The remaining 49% stake will be retained by the Rokkedahl family, which has been producing chickens since 1963.

Under the deal, Danpo will have the option to acquire the remaining stake in Rokkedahl Foods in 2023.

The Rokkedahl family also operates Rokkedahl Landbrug, including Rokkedahl Foods and certain other businesses.

Rokkedahl Foods’ production facility will continue to be owned by the Rokkedahl family.

The deal is not subject to any approvals from authorities and is expected to close on 1 September next year.

Scandi Standard has been engaged in the production and distribution of ready-to-eat, chilled and frozen products under various brands, including Kronfågel, Danpo, Den Stolte Hane, Naapurin Maalaiskana, and Manor Farm.

In Norway, the company is also engaged in the production of and sale of eggs.