Hedegaard Foods makes acquisition in Estonia
HEDEGAARD foods has acquired egg specialist OÜ Koks Munatootmine, a subsidiary of Estonian food company HK Scan Estonia.
The acquisition will strengthen HEDEGAARD foods' activities within eggs, cooked and pasteurised egg products.
- We are delighted to have obtained a strong foothold in Estonia, where we believe there is a lot of potential. The acquisition fits strategically well with our other activities in the Nordic Region, and we see multiple synergies, not least with our Finnish business. Customers in our industry want large volume at competitive prices, something we can provide thanks to this acquisition, says Ivan Noes Jørgensen, CEO of HEDEGAARD foods, and continues:
- In addition, it gives HEDEGAARD foods access to the Baltic markets which will help make product development and the launch of new products even more profitable," he says.
HEDEGAARD foods takes over a farm specialising in rearing of day-old chicks, an egg production facility and an egg packing plant, all three based just east of Tallinn. OÜ Koks Munatootmine has an annual turnover of EUR 6,7 million and employs around 35.
According to HEDEGAARD foods Chairman, Christian Junker, the acquisition is part of the group's internationalisation strategy in Scandinavia and the Baltic region.
- HEDEGAARD foods is implementing an internationalisation strategy designed to build up an international egg business able to match the expansion of retail chains across national boundaries. The acquisition in Estonia gives us a base in the Baltics from which we can develop our business in terms of revenues and competitiveness, says Junker before adding:
- There will also be plenty of opportunity to utilize synergies with the other members of the Danish Agro group that have a strong foothold in the Baltics and the other countries in that region already, he says.
The HEDEGAARD foods group has activities in Denmark, Sweden, Finland, Holland and Estonia, and expects turnover to be about EUR 175 million in 2014.
The deal is awaiting final approval by the Estonian competition authorities.