Stockholm / SE. (lu) Lantmännen Group is selling its holding in Svenska Foder to Danish DLG and at the same time is increasing its holding in German HaGe Kiel. Lantmännen is also acquiring the Finnish fast food bakery Baco. Furthermore, the Board of Directors has decided to evaluate the divestment of Lantmännen Granngarden.
Lantmännen recently inaugurated its new strategy. It aims to create a focused and profitable Lantmännen. Measures will include refining the Group´s business and making the product portfolio leaner, sharper and more international, as well as placing extra focus on those areas that have been identified as investment areas.
«One of these is Lantmännen Lantbruk whose business will become more international. To strengthen their positions Lantmännen Lantbruk and Danish DLG have chosen each other as strategic partners outside each company´s domestic market. DLG will also be taking over Lantmännen´s 49 percent holding in Svenska Foder, and Lantmännen will increase its holding in HaGe Kiel to 25 percent by taking over five percent of DLG´s shares in that company. There is also an agreement in place to eventually increase this share holding to 35 percent. Geographic markets for Lantmännen Lantbruk´s international expansion and presence outside the domestic markets include the Baltic region, Poland and Germany», explains President and CEO Per Strömberg.
Lantmännen Unibake is another investment area for the Group. That is why it has approved the acquisition of Finnish Baco, which is the leading supplier of buns for hamburgers and hot dogs in Finland. Other markets include the Baltic region and Russia.
Lantmännen´s portfolio strategy will clarify which core businesses will make up the Group´s portfolio and which businesses Lantmännen no longer intends to run in the long-term. The Board of Directors and the Management have analysed the advantages and disadvantages of continued ownership of Lantmännen Granngarden, and contrasted these with other alternative investments within the Group. As a result of the analysis a decision has been taken to evaluate strategic alternatives for Lantmännen Granngarden, where divestment or partnership are two of the alternatives under consideration.
«As Lantmännen Granngarden will not be a prioritised business area it is only fair to employees, customers and suppliers to evaluate various strategic alternatives. Another owner or partner could provide better conditions to develop Lantmännen Granngarden´s business and special competence in a way that is positive for both its employees and other interested parties», Board Chairman Thomas Boden explains.
Lantmannen Group has chosen the investment bank Catella Consumer as financial advisor in the process surrounding Lantmännen Granngarden. Strömberg: «Catella has good experience from the retail trade sector and similar processes. The important thing now is to find a solution that will be good for Lantmännen Granngarden, for the Lantmännen Group and the Group´s owners».
OTHER TOPICS FROM THIS SECTION FOR YOU:
- LG Chem and ADM: Joint Ventures in Illinois are canceled
- Wendy’s: Company plans to expand into Europe
- Delivery Hero: may face significant fine due to antitrust violations
- Emmi Group: intends to acquire Mademoiselle Desserts
- AB Foods: announces strong H1-2024 performance
- DSM-Firmenich: Queen Maxima inaugurates new dual head office
- RBI: Announces Investments to Drive Growth in China
- Europastry S.A.: puts its IPO process on hold
- McCormick: Reports Second Quarter Performance
- Reborn Coffee: Closes Master License Agreement for UAE
- General Mills: Reports Fiscal 2024 Fourth-Quarter Results
- SunOpta expands plant for processing plant-based beverages
- Britannia: Operating profit grew 10 percent in FY-2023
- Tate + Lyle and CP Kelco to merge to leading global player
- Ülker Bisküvi: announces Q1-2024 financial results
- Europastry: intends to go public on the Spanish stock exchange
- Europastry S.A.: publishes 2023 Annual Report
- Swisslog: announces new Americas region headquarters
- Reborn Coffee: Expanding Omni-Channel Strategy
- Mondelez International and Lotus Bakeries Join Forces