Fazer Group: purchases Lantmännen Färskbröd

Helsinki / FI. (fg) Fazer Group acquires a Swedish bakery company Lantmännen Färskbröd and thereby becomes second-largest in the Swedish bakery market. The Swedish Competition Authority (Konkurrensverket) still has to approve the transaction. The purchase includes one of Sweden´s most well-known and popular brands – Skogaholm. Fazer will invest over 50 million EUR in bakery operations in Sweden during the coming three years.

Fazer Group is acquiring Lantmännen Färskbröd with the exception of operations in Örebro. Lantmännen Färskbröd is a subsidiary of Lantmännen, which had a turnover of 135 million EUR in 2007. Lantmännen is one of the Nordic area´s largest Groups within food, energy and agriculture. Already today, Fazer Bakeries holds a strong position in Sweden, and with this transaction it becomes an even stronger player.

«Sweden is one of our primary market areas. Through this investment, we obtain a broader range of products, a very effective distribution chain, and a nation wide local production. We will invest over 50 million EUR in the development of the bakery operations in Sweden. Our vision is to be the leading company in the Swedish market, and through this strategic acquisition we will be well-equipped to achieve this objective», says Karsten Slotte, President and CEO of Fazer Group.

«We are happy to sell Lantmännen Färskbröd to a stable and reliable company such as Fazer. The sale is part of our business strategy to reorganise our operations», says Per Strömberg, President and CEO of Lantmännen.

A number of synergies are created through the transaction, particularly within distribution, as Lantmännen Färskbröd´s operations and competence go over to Fazer Bakeries. This will also provide the popular Skogaholm loaf and other bread products with the best possible future prospects.

The Skogaholm loaf, extremely popular within Sweden, will not be changed, and indeed, it will continue to be baked with Swedish flour in Swedish bakeries, just as other bread products included in the transaction. Axa brand will exclude from the acquisition and Fazer will gradually integrate Axa breads into its brand portfolio.

«We have so far increased our market share in Sweden especially with new products. Now we continue our growth with a broader product range which we will develop according to the taste habits and wishes of the Swedish consumers», says Markku Numminen, Managing Director of Fazer Bakeries.

For retail, the acquisition implies several advantages a stable business partner, a broader product range and greater access to Fazer products provide for coordinated deliveries and fewer contact surfaces.

Fazer Group has operations in eight countries and it perceives Sweden as its second domestic market. In addition to bakery products, Fazer also offers meal services and confectionery. Fazer Group had a turnover of more than 1,2 billion EUR in 2007 and it employs a total of 15’000 people. In Sweden, Fazer currently has about 2’300 employees and a turnover of approximately 230 million EUR. Fazer Bakeries´ turnover in Sweden amounted to 56 million EUR in year 2007. The company employs approximately 600 people. The bakeries are located in Lidköping and Lövånger (source).