Slaughterhouse acquisition cleared by Swedish authorities
KLS Ugglarps’ acquisition of the majority stake in Dalsjöfors Slakteri will take effect from FY 2015/2016 and it is estimated the deal will boost Danish Crown’s revenue by approximately DKK 1 billion.
Jonas Tunestål, CEO of KLS Ugglarps, said: "It’s great news that the agreement has now been finalised. Work will now commence on integrating Dalsjöfors Slakteri into Danish Crown and streamlining our processes. At the same time, we must identify which investments are necessary to realise the synergies which are a shared objective for both parties."
Danish Crown first acquired a stake in KLS Ugglarps in 2007 and its activities are based in the Skåne and Kalmar regions, while Dalsjöfors Slakteri is situated in Borås in Västra Götaland.
Both companies slaughter pigs and cattle, and mainly sell their products to the Swedish retail trade. The cooperation means that both southern and central Sweden will be better covered by KLS Ugglarps.
Kjeld Johannesen, group CEO of Danish Crown and chairman of the board of directors of KLS Ugglarps, added: “First and foremost, the acquisition of a majority stake in Dalsjöfors Slakteri will result in a significant increase in the number of pigs and cattle supplied. Access to raw ingredients is crucial for us being able to further develop our cooperation with the Swedish retail trade. The takeover is therefore an important step in our efforts to make KLS Ugglarps an even stronger asset for Danish Crown and Danish Crown’s owners.”
