STOCKHOLM, SWEDEN — Scandi Standard, a leading poultry processor in the Nordic region and Ireland, announced the finalized acquisition of an integrated Lithuanian poultry processor from a group of entrepreneurs.

The deal includes an advanced processing plant, poultry farms and land plots. Scandi Standard expects to produce between 20,000 and 25,000 tonnes of product annually with the new acquisition by 2025. The added operation will fall under the company’s ready-to-cook business.

Operations are expected to commence in the coming weeks.

“This deal is a significant step in the strengthening of Scandi Standard’s overall business and a catalyst to reaching our financial targets,” said Jonas Tunestål, chief executive officer of Scandi Standard. “In addition to having the best prospect for acting as a competitive, high-quality, supplier in its own right, it will allow us to better service the most price-sensitive segments in our home markets and represent a cost-competitive supplier meeting the strict raw material criteria of our ready-to-eat activities.”

Scandi Standard indicated its intentions to purchase the poultry processor for 23.5 million euros ($25.7 million) in mid-August.

On top of the purchase price, the company plans to invest an additional 5-7 million euros ($5.5-7.7 million) in working capital and new equipment during the initial ramp-up period.

During the start-up phase, Scandi Standard will allocate significant internal human resources to ensure its high standards for animal welfare, food safety, process operations, and market- and product-related activities are implemented fully.

The existing core team members and certain managers will continue working at the Lithuania site.

“I am confident that businesses in Lithuania have all the prerequisites to combine low costs with the highest product quality standards,” Tunestål said. “Although I expect the business to be moderately loss-making during the start-up period of 6-12 months, the margin potential of the integrated business in Lithuania should be well above Scandi Standard's prevailing level. Once this is demonstrated we expect to gradually grow throughput from the initial level.”

Currently, Scandi Standard is experiencing a growth in demand, and the company is on track to increase its margins by roughly 50%, from about 4% to over 6% by 2027.

The company produces, markets and sells ready-to-eat, chilled and frozen products under the brands Kronfågel, Danpo, Den Stolte Hane, Manor Farm and Naapurin Maalaiskana. It also produces and sells eggs in Norway. With current annual sales of more than SEK 13 billion ($1.25 billion), Scandi Standard employs approximately 3,200 team members.