COBALT advises on the sale of HKScan’s Baltic business to AS Maag Grupp
2022 - 12 - 15
COBALT advises the sale of HKScan Oyj’s Baltic business to AS Maag Grupp.
HKScan has operated in the Baltics since 1998 and the transaction concerns its Estonian, Latvian and Lithuanian subsidiaries AS HKScan Estonia, AS HKScan Latvia and UAB HKScan Lietuva. HKScan’s Baltic production units are located in Rakvere, Tabasalu and Viiratsi in Estonia and Jelgava in Latvia. In 2021, net sales for the Baltic business amounted to €170 million and the average number of employees in the three countries is some 1 500.
AS Maag Grupp is an over 25 years old Estonian food company operating in the meat and dairy business. Maag’s net sales in 2021 totalled €233 million and it employs some 1 000 people.
The debt-free purchase price is €90 million, of which €20 million is conditional on the combined performance of the separately defined meat business subject to the transaction and Maag Grupp’s Baltic meat business in the following years.
The transaction is subject to merger control clearances and is expected to close in the second half of 2023.
COBALT worked in cooperation with DLA Piper acting as lead counsel and advised HKScan for legal matters related to Estonian, Latvian, and Lithuanian laws. Our team included Partner Martin Simovart, Managing Associate Jesse Kivisaari, Associate Getter Villmann, Managing Partner Dr. Irmantas Norkus, Partner Guntars Zile, Managing Associate Deimante Pagiriene, Senior Associates Diana Zepa and Žygintas Voronavičius.