Poultry group Scandi Standard has acquired a set of manufacturing assets from Tyson Foods in the Netherlands.
Based in Sweden, Scandi Standard confirmed that the acquisition includes two lines dedicated to processing breaded poultry products. These assets, which are situated in Oosterwolde, experienced fire damage in 2023.
Although the financial details of the transaction remain undisclosed, Scandi Standard indicated that an investment of approximately €28m ($28.6m) is necessary to restore these lines to operational status, with operations slated to commence in the third quarter.
Additionally, this acquisition will enhance Scandi Standard’s capacity to produce ready-to-eat products by an impressive 90%, supplementing its existing portfolio of fresh and frozen poultry offerings.
Scandi Standard CEO Jonas Tunestål remarked, “The current transition toward a more pan-European marketplace for frozen breaded products requires us to step up from a Nordic to a leading European player. Following a small drop in demand linked to Covid-19 and inflation, we expect European demand to pick up significantly in the coming years.”
Furthermore, Tunestål added, “As the market for breaded products is becoming truly European, cost leadership is a prerequisite to succeed. Typical clients, such as quick service restaurants (QSRs), require the highest quality standards and contingency capacity in case of disruptions.”
The transaction with Tyson signifies a strategic shift for Scandi Standard, supplanting a planned €30m investment at a Danish facility that would have increased capacity by 20% by 2027.
In 2024, Scandi Standard reported net sales of approximately 36,000 tonnes of breaded poultry products, corresponding to a 5% share of the European market.
Tyson had previously acquired the Oosterwolde site from BRF in 2019 as part of its acquisition strategy for Brazilian assets across Europe and Thailand.
Scandi Standard disclosed that the construction of the two breaded product lines completed in early 2023, and operations commenced shortly thereafter. However, the site suspended operations in December 2023 due to the fire.
Alongside this investment, two older factories are being demolished, thus providing Scandi Standard the flexibility to expand its operations beyond the initially planned breaded product lines.
In August, Scandi Standard acquired a poultry processor, along with associated farms and land in Lithuania for €23.5m. The initial processing output at the Lithuanian facility is anticipated to be around 20,000 to 25,000 tonnes, contributing to Scandi Standard’s ready-to-eat business.
