ATRIA TO ACQUIRE A COMPANY IN LITHUANIA Atria will acquire the shares outstanding in the Lithuanian meat company UAB Saltuva. At present, Saltuva sells and distributes Vilniaus Mesos Kombinatas (VMK) products, which are well known amongst Lithuanians. Saltuva is building a modern meat processing plant in Vilnius. The plant will be completed next summer and the company has received substantial investment aid for it. The majority of the shares are owned by the company's present managing director, who will stay on in the company's management after the acquisition. The acquisition of Saltuva is Atria's first step towards establishing a strong position in Lithuania. Its market, with 3.5 million inhabitants, is the largest in the Baltic countries, and no other meat companies in western ownership operate there yet. No company holds a dominant market position in Lithuania and it is believed that once the country joins the EU the market structure will change substantially and operations will become centralised following the spread of retail chains. Due to their differing consumption habits, each of the Baltic countries has its own market, and thus products are manufactured nationally in each of the countries. Saltuva's market share is currently about 10% of the market and its turnover is about EUR 10 million. Atria believes that it is well- poised to improve the company's position in the next few years. Atria is strong in Finland and Sweden Atria's domestic markets are Finland and Sweden. It is the largest company in its field in Finland. Of its turnover of slightly over EUR 800 million this year, over EUR 400 million is accounted for by Atria Oy, which is responsible for domestic business operations, and EUR 40 million by Liha ja Säilyke Oy, while Lithells AB's turnover will grow to about EUR 340 million this year. Sweden accounts for in excess of 40% of the Group's present functions. Last autumn, Atria's Swedish subsidiary Lithells AB acquired the meat company Samfood AB, which had posted a loss for numerous years running under its former owner, the Federation of Swedish Farmers LRF. After the post-acquisition integration in the autumn, Atria has successfully revitalised the company's operations. Lithells AB and all its subsidiaries will most likely achieve substantially better earnings levels than last year. In the retail market, the company holds a market share of about one-quarter, including the brands it manufactures for sale under the stores' own brands; its market share is close to that of the market leader, Swedish Meats, which is currently loss-making. Weak market for pork In Atria Oy's domestic operations, profitability has improved in all business areas apart from slaughtering. In the case of pork processing in particular, strong overproduction in all of Europe and Finland has weakened the price level significantly and prevented healthy financial performance. The business climate for pork is expected to improve at some point next year. The objective: a third domestic market area Atria Group plc's acquisition in Lithuania is part of Atria's strategy of gradually establishing a third market area in addition to Finland and Sweden. In addition to Lithuania, Atria is looking into opportunities for developing production operations in Russia as well. This may be carried out alone or alternatively a suitable partner will be sought for the project. Further information: Seppo Paatelainen, President, tel +358 400 661 742. Atria Group plc is a forward-looking meat processing company that is going international at a rapid clip. Our brands are Atria, Chick and Duke's as well as Sibylla, Lithells and Forssan. In 2003, Atria Group plc's turnover is expected to rise to EUR 800 million, of which Sweden will account for about EUR 350 million. We employ 3700 people on average. The largest companies of the Atria Group are Atria Oy, Lithells AB and Liha ja Säilyke Oy. ATRIA GROUP PLC Seppo Paatelainen President DISTRIBUTION Helsinki Exchanges Principal media
Newsroom