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
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.
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
â€¢ KLS (in
â€¢ Danish Crown
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