Atria eyes takeover of Swedish poultry firm Lagerberg
Completion of the takeover, which Atria estimates will generate an extra €30 million in net sales per year, is expected to be formalised in the second quarter of 2016.
Lagerberg owns a meat processing site and its own chicken-rearing facility in Blekinge, southern Sweden. In addition, Lagerberg buys birds from local producers. And Atria will assume control of all of these assets.
The takeover of Lagerberg marks the company’s first foray into Sweden’s white meat processing industry, a move that is part of Atria’s wider plan to build a strong poultry business in Sweden.
‘Modern and popular’
The reasoning behind this is that the poultry market has been showing strong signs of growth in Sweden. In 2015, retail sales grew by 7%, according to Atria, and the company is keen to tap into this market.
“We value Lagerberg’s over 50 years of experience, the company’s local presence and consumer confidence in the Swedish bird and the brand’s stock,” said Tomas Back, managing director, of Atria Scandinavia in a press statement.
“Chicken is a modern and popular dining option. In Sweden, demand has increased in recent years and, in 2015, chicken had a rise of 7% in supermarkets.”
Russian woe
Atria has not confirmed how much its acquisition of Lagerberg will be worth, but the deal still needs the approval of the Swedish Competition Authority.
Atria is based in Finland’s capital Helsinki, but is also present across the Nordic and Baltic regions. Three weeks ago, the company’s Russian arm, Atria Russia, reported a 23% drop in sales as economic instability in the market made consumers seek out cheaper types of meat.
