Maag Group acquires HKScan’s Baltic businesses

Ellex advised dairy and meat industry group Maag Group on the acquisition of HKScan’s Baltic businesses.

Dairy and meat industry group Maag Grupp signed an agreement on Tuesday to acquire HKScan’s Baltic businesses for up to €90 million. The transaction will amount to at least EUR 70 million, of which EUR 55 million will be paid upon closing. The remaining 20 million is a variable amount.

The transaction is subject to approval by the Latvian and Estonian Competition Authority and is expected to be completed in the second half of next year.

Roland Lepp, chairman of the supervisory board of Maag Group, said the acquisition of HK Scan’s Baltic businesses will help the company strengthen its position in the Baltic market. “It will also provide better food security in turbulent times,” he added.

Maag Group is a 100 per cent Estonian-capitalised food manufacturing company. The company is owned by three shareholders, Roland Lepp, Aivar Saarma (37.5 percent each) and Toomas Juhani (25 percent).

HK Scan owns the Rakvere meat processing plant, the Talleg meat processing plant in Tabasalu and the production unit in Viirats, Estonia. In addition, HK Scan has a production unit in Jelgava, Latvia.

Ellex Baltic team that advised Maag Group was led by Ellex partner in Estonia Sven Papp.

Ellex team in Estonia included Partner Martin Mäesalu, Counsels Gerda Liik and Jaanus Ikla, Senior Associates Hanna Pahk and Merlin Liis-Toomela, Associate Kevin Gerretz, Lawyers Erik Seim and Miikael Tuus.

Ellex team in Latvia included Partners Filips Klavins and Liga Merwin, Senior Counsel Iveta Ceple, Senior Associates Marta Cera, Anna Misneva, Inese Freivalde and Edvijs Zandars, Associates Ints Skaldis, Kristers Losans and Mikijs Zimecs.

Ellex team in Lithuania included Associate Partner Edvinas Beikauskas, Senior Associates Mantas Juška and Marijus Dingilevskis, Associates Ieva Krivickaitė, Kamilė Skrupskytė and Ainis Augustas Petrulis.