Investment Scandi Standard buys 51% stake in Rokkedahl Foods
The Rokkedahl family, which will continue to own approximately 49% of Rokkedahl Foods, has produced chickens since 1963 in Kølby in Himmerland (25 km from Danpo in Aars). The Rokkedahl family also operates Rokkedahl Landbrug, which supplies live chickens to processors including Rokkedahl Foods, and certain other businesses.
Rokkedahl Foods’ production facility will continue to be owned by the Rokkedahl family and will be rented by Rokkedahl Foods at market terms. Pursuant to an agreement with the Rokkedahl family, Danpo has been granted an option to acquire the remaining 49% in Rokkedahl Foods in 2023 based on an EBITDA multiple of 6. No material price is paid for the subscribed shares. Danpo has however agreed to guarantee certain of Rokkedahl Foods’ interest-bearing debts and leasing obligations in a total amount of approx. DKK 56 mill.
The investment, which is not subject to any approvals from authorities, is expected to close on 1 September 2018. While Rokkedahl Foods will be consolidated by Scandi Standard, the investment is not expected to have any material effects on Scandi Standard’s net sales, net operating income and net cash flow, but will accelerate the implementation of a premium concept in Denmark and give access to the new processing plant that is ideally structured for processing of organic and free-range birds.