Swedish chicken producer Scandi Standard has agreed to acquire Lagerbergs in a SEK105m ($12.7m) deal.
The company has signed an agreement to this effect which is subject to Swedish competition authority approval.
Said to be the third largest producer of chicken products in Sweden, Lagerbergs employs close to 120 people. It processes close to 10 million birds annually and generated SEK300m ($36.5m) in annual sales during 2014.
Commenting on the acquisition, Scandi Standard CEO Leif Bergvall Hansen said: "I am very pleased to announce this proposed acquisition, securing for Scandi standard additional capacity in the Swedish market, which is growing.
"We believe there are significant synergies to be achieved."
Scandi Standard slaughters, produces, develops, processes, and sells chicken products in Sweden, Denmark, and Norway.
The company offers fresh and frozen products, including whole chickens; and value-added products, such as cuts, and flavoured and pre-cooked products, as well as further processed products and meal solutions under Kronf?gel, Danpo, Ivars, Kronf gel Stinas, Chicky World, Den Stolte Hane, and Vestfold Fugl brands.
Its products are exported to 40 countries.