Atria entered Sweden’s growing poultry markets with an acquisition

Strategy

Atria entered Sweden’s growing poultry markets with an acquisition

Atria carried out a growth investment which allows it to expand its operations to Sweden’s growing poultry markets. Atria bought the Lagerbergs poultry company forapproximately EUR 19 million, and decided on a roughly EUR 14 million investment programme to develop the firm’s entire production chain.

In the spring, Atria acquired the poultry company Lagerberg i Norjeby AB (Lagerbergs). At the time of the transaction, the firm was the third largest operator in Sweden’s chicken market, with net sales of approximately EUR 30 million. The transaction supported Atria’s growth strategy in Sweden, where demand for chicken products has grown substantially for a number of years already, especially at the expense of beef products. The average annual growth is about five per cent. The growth in Swedish chicken products sold under the brand Svensk Fågel is slightly higher.

Lagerbergs has a production plant and its own chickenrearing facility in Blekinge, southern Sweden. The firm also sources chicken from local contract producers.

Atria aims to increase its chicken business considerably with both the Lagerbergs brand and the company’s other brands. To develop production capacity and the entire operating chain, Atria initiated an approximately EUR 14 million investment programme extending to 2018. The investment is supported by a long-term contract on the delivery of chicks.

Lagerberg i Norjeby AB

• net sales roughly EUR 30 million
• annual production approximately 10 million chicken
• more than 100 chicken products
• a market share of about 10 per cent
• number of staff 120
• six own farms, own chicken-rearing facilities, extensive network of contract producers
• FSSC 22000 and ISO 22000 certificates
• the company was established in 1965 at Listerlandet in southern Sweden
Some of the company data is from 2015.

Read Atria's Company Release