Baltic shake-up: Lantmännen to acquire Vaasan

Vaasan pulled in net sales of €415m ($481m) in 2013. It operates across Finland, Sweden, Norway and the Baltic region with a number of well-known brands, including Finn Crisp. Lantmännen already owns 8% of the shares in Vaasan.

Werner Devinck, CEO of Lantmännen Unibake, said the full buyout of Vaasan would expand the company’s geographical presence but also portfolio, thanks to different product specialties.

“[Vaasan] is a growing and profitable business and we see that it is especially active in the Finland and Baltics area, so we see some increased opportunities there,”​ he said.

Vaasan’s specialization in crisp bread products also held expansion promise, Devinck said, as it branched away from Lantmännen’s traditional business of fresh and frozen baked goods and pastries.

“Crisp bread is a growing business. We see, for instance, that in the UK there is an increasing interest for crisp breads and that gives us additional opportunities.”​

Strengthening amid competition​

Devinck said these strengths were particularly helpful amid an increasingly competitive market.

“We complement each other in many aspects – in products and channels, for example. We believe competition is increasing and is coming from inside and outside the region – that’s quite clear… And we believe we can enhance our position with this acquisition.​

“…We want to improve our position with a broader product range, new product concepts and​ a larger new product development and innovation effort to benefit our customers and consumers,” ​he said.

The acquisition is subject to regulatory approval, expected by mid-2015.

“For the time being, we remain independent; we remain competitors until that approval,” ​Devinck said.