Finland-based meat processor Atria plans to enter Sweden's poultry sector by acquiring chicken supplier Lagerberg i Norjeby (Lagerbergs).
Expected to be completed in the second quarter of this year, the acquisition will generate an additional $33.3m in net sales a year.
Altria intends to buy the entire share capital of Lagerbergs, which owns a processing plant and a chicken-rearing facility in Blekinge. The Swedish poultry firm also purchases chickens from local producers.
With the takeover of Lagerbergs, Atria is making its first move into Sweden's white meat processing industry.
Demand for Swedish-produced chicken has increased consistently in recent years.
Last year, retail sales of poultry meat increased by 7% in the country.
The closure of the deal depends on the approval of the Swedish Competition Authority.
Atria Scandinavia managing director Tomas back was quoted by Global Meat news.com as saying: "We value Lagerbergs over 50 years of experience, the company's local presence and consumer confidence in the Swedish bird and the brand's stock."
Last month, Atria reported a nearly 25% decrease in sales to $83m.
