Tapola buys Wigren, bringing two Tampere meat companies together

Tapola, the Tampere meat producer known for black sausage, is buying the entire business of more than 100-year-old Yrjö Wigren Oy, Yle reports. The agreement was signed last Saturday, and the deal is expected to be completed by mid-November.

The purchase covers Wigren’s products and recipes, machinery and equipment, and staff. Wigren’s brand and products will remain unchanged, Tapola chief executive Kristian Tapola said.

Wigren employees will transfer to Tapola on their existing terms. Most production will move to Tapola’s factory in Lielahti, while some will continue at Wigren’s current premises in Sarankulma. The factory outlet there will also remain open as before.

The Sarankulma property is not included in the deal because it is owned by a separate real estate company. Once the acquisition is complete, Tapola expects to employ more than 100 people in the food industry. The company forecasts revenue of 22 million to 23 million euros in 2027.

Tapola described Wigren as more of a “little brother” than a competitor. Wigren was founded in 1917, while Tapola is 73 years old. Last year, Tapola reported revenue of just over 14.2 million euros and operating profit of just under 400,000 euros. Wigren recorded revenue of 9.4 million euros and operating profit of 630,000 euros.

Wigren ran into financial difficulties and went bankrupt before changing ownership in 2011. Tapola said competition in the sausage industry is tough and unlikely to ease soon. It does not see the growth in vegetarian eating as a threat, but expects some meat consumption to shift towards ready meals.