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News 584 views last update:Oct 18, 2007

Danish Crown makes another move in Sweden

Danish Crown has announced that it will acquire the Swedish cooperative slaughterhouse KLS. The partners agreed on a declaration of intent this week.

As a result of the takeover, the Danish meat conglomerate will acquire a slaughterhouse in the Swedish town of Kalmar and also a meat product plant in Gothenburg. Currently, the Swedish cooperative is still owned by 2,800 members from the pigs, cattle and sheep industry, with a turnover of €100 million and 240 employees.

Sensible synergy
Danish Crown's CEO Kjeld Johannesen said that the takeover yields a 'sensible synergy' and that KLS can profit from Danish Crown's international competence.

Last year, KLS processed 207,000 pigs, 40,000 head of cattle and over 10,000 sheep. In the last years, however, the number of slaughterings has shown a slightly decreasing tendency. In 2006, the cooperative suffered losses of €4 million.

Sweden
The takeover is the second move in Sweden by Danish Crown in a relatively short period of time. In August, Danish Crown acquired the Swedish slaughterhouse Ugglarps.

The members of the KLS cooperative have yet to approve the acquisition.

Related websites:
• KLS (in Danish)
• Danish Crown
• Ugglarps

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