October 14, 2008 - As part of its strategy to create a focused and profitable company, Lantmännen has decided to sell its fresh bread business in Sweden. The businesses in the Group's overall product portfolio have been divided into three areas: key investment areas in its core business; other core businesses; and areas to be disposed of. Lantmännen Unibake is one of the Lantmännen Group's key investment areas.
Lantmännen Unibake includes the frozen bread focus area, such as products baked in stores, hot dog and hamburger rolls and pastries. It is Lantmännen Unibake's ambition to lead a European consolidation of the frozen bread sector through acquisitions and alliances.
“The Swedish fresh bread business is not in our key investment area, so Lantmännen has decided to sell the business in Sweden,” said Per Strömberg, Lantmännen President and CEO.
In Sweden Lantmännen Färskbröd mainly sells its products under the Bageri Skogaholm name. In 2006 a "turnaround" project was initiated which turned out well.
“Lantmännen now considers the fresh bread business to be so solid that we are choosing to sell it to an owner whose core business is fresh bread, with different means to develop the business in Sweden than we have. It would not be fair to the employees, customers or suppliers to retain the business in Sweden without investing the necessary resources into it,’ said Lantmännen’s Chairman, Thomas Bodén.
“Fazer will become the number two player in the Swedish bread market through this acquisition. In addition to a broader product line, we will obtain a series of synergies, primarily in distribution, thanks to both companies’ strong positions. We can make the most of the Lantmännen Färskbröd business potential, and give the Skogaholm brand and the other bread brands the best possible future prospects,” Fazer’s Group CEO Karste Slotte emphasized.
“I want to take the opportunity to thank all of the employees in the fresh bread business who have been purposefully doing a fantastic job, especially this last year. Furthermore, it is reassuring that Fazer, with its experience in this area, will be the new owner of the business,” said Lantmännen President and CEO Per Strömberg.
The takeover is anticipated to take place later in October after the Swedish Competition Authority has given its approval.