October 11, 2010

Danish Crown takes a step further in acquisition plans

With the acquisition of an abattoir in Germany, Danish Crown is reaching another milestone in its DC Future plan.

The agreement is, among other things, conditional upon approval by the competition authorities, but both parties expect this approval to be obtained shortly.

Slaughtering 3.5 million animals a year, D&S Fleisch is the fourth-biggest slaughterhouse in Germany.

Danish Crown CEO Kjeld Johannesen said a German slaughterhouse for German pigs will offer access to the market, which will benefit the entire group. With this acquisition, Danish Crown is gaining a presence in the German market and also strengthening its international sales.

D&S Fleisch is situated in Essen (Oldenburg) close to a number of Danish Crown's other departments in northern Germany. In addition to the slaughterhouse facilities in Essen (Oldenburg), Danish Crown is also taking over D&S Fleisch's other slaughtering unit in Cappeln. Danish Crown not only plans to continue operations in Essen, but expects to expand capacity and create more jobs in future.

So far, D&S Fleisch has been a privately-owned company.

D&S Fleisch supplies the retail trade and the processing industry as well as export markets, and the pig deliveries are based on contracts which Danish Crown is taking over in conjunction with the acquisition.

Fleisch Krone Feinkost, the convenience business, is not included in the transaction but will still be managed by the existing owners.