STOCKHOLM, Sweden – Kronfågel Group and Cardinal Foods, two of Scandinavia's leading poultry producers, announced the two companies will merge. Private equity firm CapVest and Lantmännen, a Swedish farmer-owned business that owns Kronfågel Group, coordinated the deal.
The new company will be a leading presence in the Nordic chicken market with SEK 5.4 billion ($844.1 million) in sales from Kronfågel, SweHatch Bird and Skane in Sweden, Danpo in Denmark and Cardinal Foods in Norway. CapVest will own a 52 percent stake in the company, while Lantmännen will control 48 percent. The transaction is subject to approval from the relevant competition authorities. Headquarters and the company name will be announced later.
"This is a positive deal for all involved, where we create a solid foundation for a strong overall focus on chicken," said Per Olof Nyman, CEO of Lantmännen. "It will benefit owners, breeders, customers and consumers, for example through increased resources for product development. The deal realizes the value built up during our time as owners of Kronfågel group. Together with CapVest we create a new market leader, and we are also part of the future value growth."
Kate Briant, partner at CapVest and future chairman of the new company, said the food sector is a key investment sector that offers significant opportunities for consolidation and growth.
"We see it as a good opportunity to work with a competent management team and market-leading businesses, build a platform that we can use as a basis to grow and expand, both locally and on a larger scale," Briant added.
Kronfågel Group is the largest poultry producer in Scandinavia and employs 1,200 people. The company offers frozen and refrigerated processed chicken through a variety of brands. Cardinal Foods is a leading producers for eggs, chicken, turkey and duck meat in Norway.