Raisio Sells Malt Business to Viking Malt
The transaction value is EUR 17 million and Raisio recognises a one-off gain of approximately EUR 5 million on the transaction for the second quarter results of 2011. The malt business has been unprofitable as a result of, e.g., increased energy taxes and waste water costs.
7/1/2011 --- Raisio plc has sold its malt business to Viking Malt Ltd, the largest malt manufacturer in the Nordic Countries. The divestment of Raisio Malt Ltd ensures that strong malt industry remains in Finland. Raisio continues contract farming of malting barley and develops the company’s operations as a malting barley trader and thus also as a partner to Viking Malt. The divestment of the malt business is part of streamlining of Raisio's activities as synergies between the company's other businesses have not been significant.
The transaction value is EUR 17 million and Raisio recognises a one-off gain of approximately EUR 5 million on the transaction for the second quarter results of 2011. The malt business has been unprofitable as a result of, e.g., increased energy taxes and waste water costs.
Raisio Malt Ltd was transferred to the new owner on 1 July 2011 and, at the same time, 24 Raisio employees were transferred to Viking Malt as serving employees.
Competitive situation in the European malt market has been challenging for some time because of overcapacity of the sector, centralisation of breweries as well as other raw materials used as malt substitutes. This deal facilitates the continuation of a strong malt industry in Finland and domestic breweries continue to have a Finnish malt supplier.
Viking Malt Group is owned by Finnish Polttimo Oy and Swedish Lantmännen. Its production plants are located in Finland, Sweden and Lithuania. Viking Malt sells its products to the brewing and beverage industries worldwide. Net sales of Viking Malt Group were EUR 85 million in 2010 and the company employed 123 people at the end of 2010.
