In 2024, Scandi Standard had net sales of about 36 ktonnes of breaded poultry products representing a European market share of about 5%. Over the past 10 years, Scandi Standard's Ready-to-Eat sales have grown organically by 430% (18% CAGR) with an average EBIT margin of 6% during the last five years. The total European market for breaded poultry products was approximately 712 ktonnes in 2024 and is expected to grow some 60 ktonnes by 2029 (1).

Jonas Tunestål, CEO of Scandi Standard, says: "Through this acquisition, we have secured a robust European Ready-to-Eat platform for the long term. We have a history of tremendous growth and returns in this segment, primarily derived in the Nordic region. The current transition toward a more pan-European marketplace for frozen breaded products requires us to step up from a Nordic to a leading European player. Following a small drop in demand linked to COVID-19 and inflation, we expect European demand to pick up significantly in the coming years. With limited available capacity in our main production plant in Denmark, we have been looking at how to optimally position Scandi Standard within this segment."

"As the market for breaded products is becoming truly European, cost leadership is a prerequisite to succeed. Typical clients, such as quick service restaurants (QSR's), require the highest quality standards and contingency capacity in case of disruptions. Our new setup with two separate sites, offer the optimal combination of cost efficiency, processing excellence and contingency capacity. In comparison to a corresponding greenfield, this investment can be carried out without incurring material short/mid-term return dilution and represent a much greater potential to expand EBIT/kg "

Tyson Foods acquired the Oosterwolde site as part of a larger transaction with BRF in 2019. Construction of the two state-of-the-art breaded product lines was finalised early 2023, after which operations commenced. The site, which also comprises a state-of-the-art wastewater treatment plant and two old factories, suspended operations December 2023 due to a fire. As part of the overall investment, two older factories are being demolished, leaving large flexibility to develop the site beyond the initial two state-of-the-art beaded lines.

Rabobank and ABN AMRO have acted as financial advisers, and Van Doorne and
Ro Sommernes have acted as legal advisers to Scandi Standard in connection with the transaction.

For further comments, please contact:
Jonas Tunestål, Managing Director and CEO
Fredrik Sylwan, Group CFO: +46 706 422 304
Henrik Heiberg, Head of M&A, Financing & IR: +47 917 47 724

Note:
(1) Source Rabobank (EU+UK)
 

About Scandi Standard

Scandi Standard (SCST SS) is the leading producer of chicken-based food products in the Nordic region and Ireland. The company produces, markets and sells ready to eat, chilled and frozen products under the well-known brands Kronfågel, Danpo, Den Stolte Hane, Manor Farm and Naapurin Maalaiskana. Eggs are also produced and sold in Norway. We are approximately 3,200 employees with annual sales of more than SEK 13 billion. For more information, please visit www.scandistandard.com.