Nordic poultry group Scandi Standard has sold its majority stake in Rokkedahl Food, a Denmark-based organic and free-range poultry producer.
The company has relinquished its 51% stake in the Danish group back to the minority owner Rokkedahl Food Holding A/S, which is controlled by the Rokkedahl family.
Financial details were not disclosed.
Rokkedahl Food’s products are being marketed in Denmark by Danpo, the subsidiary through which Scandi Standard purchased its majority stake in 2018. When the deal was completed, Scandi Standard had an option to buy the remaining 49% stake in 2023 based on an EBITDA multiple of six times.
Under the initial transaction, Danpo agreed to guarantee certain of Rokkedahl’s interest-bearing debt and leasing obligations amounting to around DKr56m (then $8.7m).
The deal, which will become effective immediately, will reduce Scandi Standard’s net interest-bearing debt by about Skr170m ($16.6m), according to the latest filing.
Scandi Standard CEO Jonas Tunestål said: “The divestment will reduce complexity and free up resources to focus on the ongoing turnaround process of our ready-to-cook business in Denmark. The deal will also allow us to continue marketing organic and free-range products to our customers in Denmark in a much more capital-efficient manner than today.”
Danpo will continue to market organic and free-range products in Denmark after the transaction, Scandi Standard stated in the filing.
In Scandi Standard’s annual results for its fiscal 2022, the company reported net sales of Skr12.2bn ($1.17bn), a 16% jump from the previous year. Operating income increased to SKr290m, up from SKr222m in 2021.
In the company’s first quarter of 2023, net sales amounted to SKr3.28bn, marking an increase of 18% year-on-year. However, operating income spiked by 149% to SKr93m.
