CapVest Equity Partners II (“CapVest”) and Lantmännen ek (“Lantmännen”) are pleased to announce the formation of the Nordic´s leading poultry producer, with a turnover of more than SEK 5 billion. The new company will be created through the simultaneous acquisition of Kronfågel 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 Kronfågel, SweHatch and Skånefågel in Sweden; Danpo in Denmark and Cardinal Foods in Norway. It will be led by a team of highly experienced executives drawn from both Kronfågel 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.
“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 Kronfågel Group. Partnering with CapVest to form the Nordic leader in the industry, we will also continue to participate in future value growth,” said Per Olof Nyman, CEO and Group President of Lantmännen.
“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 Kronfågel 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,” commented Leif Bergvall Hansen, intended Group CEO.
“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,” said Kai Jordahl, Senior Partner and Head of CapMan Buyout.
CapVest will be the controlling shareholder (52%) and Lantmännen will hold a significant minority stake (48%). 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.
For further information, please contact:
CapVest: Kate Wild, Ben Hickey, Wild Card+44 207 257 6470
Lantmännen: Per Olof Nyman, CEO and Group President, +46 70 657 4247
CapMan: Kai Jordahl, Senior Partner, +47 9098 2271, firstname.lastname@example.org
CapVest is an established European mid-market private equity firm focused on acquiring market leading companies supplying essential products and services. The firm places an emphasis on driving business growth through active management and has demonstrated consistent success in creating long-term value. Scandinavia has long been a core geographical focus for CapVest, through current and past investments such as RenoNorden, the leading provider of household waste collection services to municipalities in Scandinavia, Findus, the leading frozen food manufacturer and Vaasan, a pan-Nordic bakery business. CapVest’s current portfolio includes investments in staple consumer products, acute healthcare and essential services industries across Europe.
For more information, visit: www.capvest.co.uk
Lantmännen is one of the largest groups in agriculture, machinery, energy and food in the Nordic region. Our brands include AXA, Kungsörnen, Kronfågel, GoGreen, Hatting, Schulstad and Gooh. We are owned by 33,500 Swedish farmers, have more than 10,000 employees, are represented in 22 countries, and have a turnover of SEK 36.5 billion. Our company is firmly rooted in the knowledge and values that have existed among our owners for generations. We conduct research, development and operations throughout the chain, enabling us to take responsibility from field to fork.
For more information, visit: www.lantmannen.com
CapMan Group is one of the leading private equity firms in the Nordic countries and Russia, with assets under management of approximately EUR 3.1 billion. CapMan has five investment partnerships - CapMan Buyout, CapMan Russia, CapMan Credit, CapMan Public Market, and CapMan Real Estate - each of which has its own dedicated investment team and funds. Altogether, CapMan employs 110 people in Helsinki, Stockholm, Oslo, Moscow and Luxembourg. CapMan was established in 1989 and has been listed on the Helsinki Stock Exchange since 2001.
For more information, visit: www.capman.com
About Kronfågel Group
Kronfågel Group is the largest chicken producer in Scandinavia with market leading positions in Sweden and in Denmark. The company produces, sells and markets refrigerated, frozen and processed chicken through the strong brands Kronfågel, Danpo, Ivars, Chicky World and Kronfågel Stina. Together, the company has 1,200 employees and has a turnover of approximately SEK 3.5 billion. Kronfågel Group is owned by Lantmännen.
For more information, visit: www.kronfagel.se
About Cardinal Foods
Cardinal Foods is a leading player in the market for white meat and eggs in Norway. Under the brand name "Den Stolte Hane" eggs and white meat are delivered to Norwegian consumers. "Vestfold Fugl" delivers quality products of chicken, turkey and duck for large domestic and commercial market. The entire value chain from farmer to consumer is quality assured through the subsidiaries Jaerkylling AS and egg packing service Cardinal Foods Ski AS.
For more information, visit: www.cardinalfoods.no