The move opens the way for Estonia's AS Maag Grupp to acquire a portfolio of companies that includes the Rigas Miesnieks and Jelgava meat product brands in Latvia, as well as the Rakvere and Tallegg brands in Estonia, and Klaipedos Maistas in Lithuania.
Buyer and seller "intend to close the transaction in the third quarter of 2023" a statement said. The Latvian Competition Authority already approved the transaction unconditionally in February.
On December 13, 2022, HKScan announced that it had signed an agreement to sell its Baltic businesses to Estonian AS Maag Grupp. The businesses and personnel of HKScan’s Baltic subsidiaries will be transferred to the new owner at the closing of the transaction.
HKScan’s Baltic production units are located in Rakvere, Tabasalu and Viiratsi in Estonia and Jelgava in Latvia. In 2022, net sales for the Baltic businesses amounted to EUR 195.7 million (2021: EUR 170.0 million), and the number of employees in the three countries is approximately 1,500. HKScan has operated in the Baltics since the summer of 1998.