Hedegaard Foods expands in the Nordic Region
HEDEGAARD foods has acquired 50% of the shares in Finnish food company Munakunta.
Munakunta is the market leader in Finland within the packing of eggs and production of pasteurised egg products with a 40% market share.The acquisition strengthens HEDEGAARD foods' position as the biggest foods group within eggs, boiled and pasteurised egg products.
- We are very satisfied with our investment in Munakunta, a modern business with a lot of potential. The strategic fit with our other activities in Denmark and Sweden is extremely good. Our retail customers want large volumes, competitive prices and innovative products, along with proactive marketing. These are all aspects that will be strengthened by the acquisition, says Ivan Noes Jørgensen
Munakunta has two egg packing plants in Finland, plus a product factory for pasteurised egg products. The group also owns a company in Estonia that produces boiled, peeled eggs for the Food Service industry. Finally, the company owns 38% of the shares in a minor egg packer on the west coast of Finland and 12% of the shares in a feed business.
In 2013, the company realised over DKK 392 million turnover with a pre-tax profit of DKK 8.3 million. HEDEGAARD foods expect its annual group turnover to exceed DKK 1.3 billion after the acquisition.
- The acquisition of 50 % of the shares in Munakunta is an important milestone in our strategy from 2010 where we decided to let HEDEGAARD foods follow the rest of Danish Agro group and become a major force in the countries around the Baltic Sea, says Christian Junker, Chairman of the Board, and adds:
- We see good potential for an international egg business able to match the expansion of the retail sector internationally, whilst creating synergies between companies to strengthen competitiveness and profitability, he says.
A new company will be formed in Finland as a result of the acquisition, called Muna Foods Oy. All business activities in Munakunta will be transferred to the new company. The acquisition is subject to merger clearance by the Finnish Competition Authorities. Munakunta's Managing Director Jan Lähde will head Muna Foods Oy, whilst HEDEGAARD foods CEO Ivan Noes Jørgensen will have overall executive responsibility for the group.