Danish DAVA Group continues to invest in Finnish agribusiness

Merger with Munakunta will create the biggest egg production company in the Nordic countries.

Danish company HEDEGAARD foods A/S, through its parent company DAVA Foods Holding A/S, has acquired 50% of the shares in Finnish food company Munakunta, the market leader in Finland within the packing of eggs and production of pasteurised egg products with a 40% market share. If the merger is cleared by the Finnish Competition and Consumer Authority, it will create the biggest egg production company in the Nordic countries with a turnover of approximately EUR 170 million, according to Attorneys at law Borenius.

Munakunta is owned by about 150 Finnish egg producers. “We are very satisfied with our investment in Munakunta, a modern business with a lot of potential. Our retail customers want large volumes, competitive prices and innovative products, along with proactive marketing. These are all aspects that will be strengthened by the acquisition,” said Ivan Noes Jørgensen, CEO at HEDEGAARD foods.

Successful acquisition of Hankkija

In January 2013, DLA Group, also part of DAVA, acquired 60% of the Finnish agribusiness group Hankkija from the Finnish retailing cooperative SOK. Hankkija has a market share of 50% in Finland and provides products and services within grain, feed, seed, raw materials, plant protection, fertilizer, premix and vitamins. The company also has a significant trade in farming machinery and is Finland’s largest manufacturer of industrial animal feed.

According to Christian Junker, Chairman of the Board at Dava, the process of integrating Hankkija into DAVA has gone very efficiently. “We are highly satisfied with the acquisition of Finnish agribusiness group Hankkija Oy, which has made an impressive profit,” said Junker earlier this year.

Hankkija’s turnover in 2013 was EUR 945 million, with profits of EUR 8.4 million. Finnish farmers are now benefitting from DAVA’s negotiating strength which has lowered the prices for farming products, said Junker in a recent interview with the Finnish newspaper Aamulehti.

Sources: Aamulehti, Attorneys at law Borenius, DLA Group/ DAVA