New Norwegian poultry processor

New Norwegian poultry processor

CapVest Equity Partners II (CapVest) and Lantmännen ek (Lantmännen) are to form one of the Nordic´s leading poultry businesses, 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 executives drawn from both Kronfågel Group and Cardinal Foods, and headed up 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.”

“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.

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