Competition Authorities Clear Danish Crown Slaughterhouse Acquisition
DENMARK - The Swedish competition authorities have finally approved the acquisition by KLS Ugglarps AB, a wholly owned subsidiary of Danish Crown, of a majority stake in the slaughterhouse Dalsjöfors Slakteri near Borås east of Gothenburg.
18 September 2015
2 minute read
"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," says Jonas Tunestål, CEO of KLS Ugglarps.
Danish Crown first acquired a stake in KLS Ugglarps in 2007, and since then the company has developed into an even stronger and more trusted cooperation partner for Swedish farmers, the Swedish retail trade and the Swedish meat industry.
KLS Ugglarps’ activities are based in the Skåne and Kalmar regions, while Dalsjöfors Slakteri is situated in Borås in Västra Götaland east of Gothenburg.
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.
"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," says Kjeld Johannesen, Group CEO of Danish Crown and Chairman of the Board of Directors of KLS Ugglarps.
Taking effect from FY 2015/2016, KLS Ugglarp’s acquisition of the majority stake in Dalsjöfors Slakteri will boost the Danish Crown Group’s revenue by approx. DKK 1 billion.
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