Raisio Oyj — M&A Activity 2021

Apr 1, 2021

Raisio to acquire Verso Food, known for its Beanit® and Härkis® products

Raisio to acquire Verso Food, known for its Beanit® and Härkis® products

Raisio plc, Stock Exchange Release April 1, 2021 at 8.30 a.m. Finnish time

Raisio will acquire Verso Food Oy, known for its Beanit® and Härkis® products.
The fava bean products, which have achieved a market leading position in
Finland, and Verso Food’s expertise support the key growth targets of Raisio
Group.

Raisio plc, together with Kavli Holding AS and Kavli Oy (later “Kavli”) have on
1 April signed an agreement, under which Raisio will acquire the entire share
capital of Verso Food Oy from Kavli. The debt-free purchase price is EUR 7
million in cash and 1 million shares of Raisio’s V-shares, currently owned by
Raisio. The portion to be paid in shares will be implemented as a directed share
issue. The terms and conditions and other more detailed information related to
the share issue can be found in Raisio’s stock exchange release, that will be
published on 1 April 2021. The transaction does not require approval from the
competition authorities.

Verso Food was founded in 2010 and is known for its fava bean products. Its
sales have grown strongly in recent years. In 2020, Verso Food’s net sales
increased almost 20% to approximately EUR 8 million. Due to large investments
and strong sales efforts, Verso Food’s business is still unprofitable. Verso
Food ended the year 2019 with a loss of ca. EUR 3.6 million and the year 2020
with a loss of ca. EUR 4.5 million. Raisio has been preparing a comprehensive
value creation and integration plan, to ensure both the continuation of rapid
growth and also the improvement in profitability. Verso Food employs some 30
food industry professionals, who will be transferred to Raisio Group as old
employees following the acquisition.

Plant-based value-added products are at the heart of the strategy

”The acquisition we are announcing is an excellent fit for Raisio’s strategy.
One of our key strategic targets is growth built on plant-based value-added
products. With Verso Food, we will achieve leadership in the rapidly growing
plant-based protein market in Finland,” says President and CEO of Raisio, Pekka
Kuusniemi. “Through the acquisition, we will also gain production technology
that complements our strategic capabilities as well as product development and
marketing expertise. I would like to warmly welcome our new colleagues to the
Raisio family,” Kuusniemi continues.

“Like Raisio, Verso Food targets growth in the international market. In recent
years, we have invested heavily into expanding the success story of plant
protein-based foods to international markets, as well. By joining forces with
Raisio, we are significantly stronger and better positioned to accelerate our
international expansion. Together, we are more than the sum of parts,” says
Verso Food’s CEO Tomi Järvenpää.

“In line with Kavli’s revised strategy we will focus on plant-based products,
but within our core categories. We sincerely believe that Raisio is a great new
owner for Verso Food and will help the company to grow both in Finland and
outside of Finland,” says Kenneth Hamnes, Group CEO of Kavli Holding AS.

Verso Food Oy will be included in Raisio’s financial figures as of 1 April 2021.
Approximately 80% of the company’s sales come from consumer products, so it will
be reported as part of Raisio’s Healthy Food segment. 20% of Verso Food’s sales
are HoReCa and industrial sales, which are planned to be reported in the Healthy
Ingredients segment.

The acquisition will not affect Raisio’s guidance for 2021. The company still
estimates that Raisio’s net sales will grow in 2021 from the level of the
comparison period (net sales in 2020: EUR 233.6 million) and that the costs
accrued as a result of our front-loaded growth investments will put pressure on
our profitability in 2021 compared to the 2020.

Raisio is currently updating its strategy for the period 2022-2025. The company
will announce its updated strategy in more detail at the Capital Markets Day
scheduled for the latter part of the first half of 2021. The covid-19 pandemic
might affect the time schedule and other details on announcing the updated
strategy. On that occasion, Raisio will also share more information about the
role that the new production facility under construction in the company’s
industrial area in Raisio, Finland will have in the company’s strategy.

Further information:

President and CEO Pekka Kuusniemi, Raisio plc, tel. +358 50 537 3883

CFO Toni Rannikko, Raisio plc, tel. +358 40 078 8812

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RAISIO PLC
Raisio is an international company specialized in healthy, responsibly produced
food, ingredients and fish feeds. Our well-known brands include, for example,
Benecol®, Elovena®, Sunnuntai®, Torino® and Benella®. In Raisio’s products, the
focus is on well-being, health, good taste and sustainable development.
Profitable growth is ensured through our strong expertise and passion for
creating new. Raisio’s shares are listed on Nasdaq Helsinki Ltd. In 2020, the
Group’s net sales totalled EUR 234 million and EBIT was EUR 28 million. Raisio
employs about 350 people. Our food is good for Health, Heart and Earth. For more
information on Raisio go to www.raisio.com.