Nordic Poultry Partnership Formed by CapVest, Lantmannen10 April 2013
SCANDINAVIA - CapVest and Lantmannen have created a premier poultry producer for the Nordic area.
CapVest Equity Partners II and Lantmännen ek have announced the formation of the Nordic region;s leading poultry producer, with a turnover of more than SEK5 billion. The new company will be created through the simultaneous acquisition of Kronfagel Group in Sweden and Denmark from Lantmännen, and Cardinal Foods in Norway from CapMan. The new ownership structure positions the business for further development in international markets, as well as opportunities for product development and innovation.
The new company will consist of Kronfagel, SweHatch and Skanefagel in Sweden; Danpo in Denmark and Cardinal Foods in Norway. It will be led by a team of highly experienced executives drawn from both Kronfagel Group and Cardinal Foods, and is intended to be headed by Leif Bergvall Hansen as Group CEO.
Commenting on the transaction, Kate Briant, Partner at CapVest and incoming Chairman said: "Food is one of our core investment sectors. It is fundamentally non-discretionary while offering strong potential for consolidation and growth. This transaction combines market leading businesses with an exceptional management team, creating a platform from which to grow and expand both locally and further afield."
Per Olof Nyman, CEO and Group President of Lantmännen and Leif Bergvall Hansen, proposed CEO of the newly formed company.
Mr Nyman commented: "This is a positive deal for everyone involved, creating a platform for a strong, collected focus on the poultry industry in all of Scandinavia. This transaction will benefit customers and consumers through increased resources for product development. Through this transaction, Lantmännen is realising the value created during our time as owner of Kronfagel Group. Partnering with CapVest to form the Nordic leader in the industry, we will also continue to participate in future value growth."
Mr Hansen said: "Our mission will be to continue to supply premium, locally produced poultry to consumers, with a strong focus on product quality, animal care, food safety and sustainability. In the combined Kronfagel Group and Cardinal Foods business, we have access to the best management talent in the industry and are motivated to develop and build the Nordic´s foremost chicken producer."
Kai Jordahl, Senior Partner and Head of CapMan Buyout, added: "During CapMan's ownership, Cardinal Foods has developed into a Norwegian leader in both poultry and eggs. This transaction will allow CapMan to realise significant value creation and will propel Cardinal Foods into the next stage of its impressive development."
CapVest will be the controlling shareholder (52 per cent) and Lantmännen will hold a significant minority stake (48 per cent). The terms of the transaction are undisclosed. Completion is subject to Danish, Swedish and Norwegian Competition Authority approval. Further information on the group's name and structure will be announced in the coming weeks.
Debt financing was provided by Nordea and DNB NOR.
DC Advisory, Danske Bank, Rabobank / Rothschild (M&A), Hannes Snellman, Herbert Smith Freehills, Haavind, Andersen and Vinge (legal), KPMG and PwC (financial due diligence and tax) and Aon (insurance due diligence) advised CapVest and Lantmännen on the transaction.
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