Rokkedahl Foods’ production facility will continue to be owned by the Rokkedahl family and will be rented by them. The family will continue to own approximately 49% of the business. The investment is not subject to any approvals from authorities and is expected to close on 1 September 2018.
As part of the agreement with the Rokkedahl family, Danpo has been granted an option to acquire the remaining 49% in Rokkedahl Foods in 2023, depending on financial performance.
Although Rokkedahl Foods will be consolidated by Scandi Standard, the investment is not expected to have any material effects on Scandi Standard’s net sales, net operating income and net cash flow, but will accelerate the implementation of a premium concept in Denmark and give access to the new processing plant that is ideally structured for processing of organic and free-range birds.
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 organic and free-range birds. Danpo will hence transfer all its existing processing of such chicken to Rokkedahl Foods following the investment.”