HK Ruokatalo has agreed to acquire the entire operation of Sweden's largest meat product firm Swedish Meats. The purchase prise is in the region of EUR 113 million.
With the transaction, HK Ruokatalo Group will become the leading food processing company in Northern Europe. It will be operational in eight Northern European countries with annual sales approaching EUR two billion. The company's Board of Directors proposes its name to be changed to HKScan.
"For the purposes of the transaction, Swedish Meats cooperative will incorporate its business into a limited company under the name Scan AB, whose capital stock HK Ruokatalo Group will then acquire in full", the HK Ruokatalo stock exchange bulletin issued on Friday morning notes. "Scan AB will become a wholly owned subsidiary of the HK Ruokatalo Group."
The transaction is aimed to be completed by the end of January 2007. It is subject to approval by the decision-making bodies of both parties.
