Scandi Standard to acquire Ireland chicken processor Manor Farm for €94m
Swedish chicken products company Scandi Standard has agreed to acquire Irish chicken processing firm Manor Farm for €94m.
The acquisition will see Scandi Standard will be paying the purchase price by an issuance of six million Scandi Standard shares (consideration shares), while the cash payment and transaction costs will be financed by a combination of available cash and existing bank facilities.
Manor Farm CEO Vincent Carton said: “In considering a succession of ownership for our family business, my brother Justin and I have been determined to find a partner that can continue to build on our strong relationships with customers, employees, suppliers and the broader communities in which we operate.
“As the next generation of Cartons has chosen to pursue other business interests, we set out to find a partner with high standards, a culture similar to our own and the capability to develop the business to its fullest potential.
“We believe that Scandi Standard is the ideal partner, and we are delighted to have agreed on a transaction structure that allows the current management to remain fully in place and that also allows the Carton family to become shareholders in Scandi Standard.
“We believe that this arrangement will serve our customers, employees, and suppliers well, and we look forward very much to the next chapter in the history of Manor Farm.”
The transaction will be completed after fulfilling the customary conditions, including approval of the issuance of the consideration shares.
The deal is expected to close during the second half of third quarter this year.
Manor Farm is one of the oldest family-owned businesses in Ireland and holds a major market share in the Irish poultry market, reporting a share of 50% for fresh chicken products sold through retail in Ireland.
The Irish firm has its processing plant in Shercock in County Cavan and employs nearly 850 people. It also owns and operates a feed mill, which has revenues of nearly €80m and produces exclusively for its contracted growers.