Raisio to divest its cattle feed business to Lantmännen
Raisio has signed an agreement to sell its cattle feed business to Lantmännen Agro Oy. The enterprise value is EUR 34 million and the arrangement will be conducted as a share transaction. Raisio’s cattle feed business is expected to transfer to the new owner during September 2018. The completion of the deal requires an approval from the Finnish competition authorities. The fish feed business will continue as a solid part of the Raisio Group.
“The cattle feed business divestment is an important step towards Raisio’s strategy focusing on healthy foods and profitable growth. The proceeds from this clearly profitable deal allow organic growth and acquisitions. Raisioaqua, the fish feed producer, is an innovative forerunner in its sector and a solid part of Raisio that focuses on healthiness and responsibility,” says the Group’s President and CEO Pekka Kuusniemi.
The divested cattle feed business includes two production plants in Ylivieska and Kouvola, as well as the brands, of which Maituri and Melli are the best-known. Raisioagro’s Benemilk licence will be also transferred to the buyer. A total of 76 employees of the cattle feed business will be transferred to Lantmännen Agro as serving employees. In 2017, net sales for Raisio’s cattle feed business totalled EUR 73.8 million, EBIT was EUR 1.9 million and EBITDA EUR 3.7 million. When the transaction is complete, Raisio will continue to deliver grains for feeds to Lantmännen Agro for the time being.
Raisio estimates that its equity ratio will be around 75 per cent after the completion of the transaction and the balance sheet around EUR 347 million.
“The acquisition of Raisio’s cattle feed business will strengthen Lantmännen’s position in the grain value chain in the Baltic Sea area. We already have large holdings in the bread and malting industry plus independent distributors all over Finland through Lantmännen Agro Oy. We are pleased to acquire Raisio’s well-established cattle feed business, since its operations fit well with our business and with the Lantmännen vision, making us a more versatile business partner for Finnish farmers,” says CEO of the Lantmännen Group Per Olof Nyman.
Lantmännen, an agricultural cooperative with grain at the heart of its operations, is owned by 25,000 Swedish farmers. The company has 10,000 employees, operations in over 20 countries and annual net sales of four billion euros. Some of its best-known food brands are AXA, Bonjour, Kungsörnen, GoGreen and Vaasan. Further information: www.lantmannen.com/en.