October 18, 2007

Danish Crown makes another acquisition in Sweden

Meat conglomerate Danish Crown has signed a letter of intent to acquire the Swedish cooperative slaughterhouse KLS.

The acquisition would include a slaughterhouse in the Swedish town of Kalmar and also a meat product plant in Gothenburg.

The Swedish cooperative has 2,800 members in the livestock industry and a turnover of EUR 100 million (US$142.3 million).

Last year, KLS processed 207,000 pigs, 40,000 head of cattle and over 10,000 sheep. Slaughter numbers have been declining in recent years. In 2006, the cooperative lost EUR 4 million (US$5.7 million) .

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.

The takeover is the second move in Sweden by Danish Crown in two months. Danish Crown acquired the Swedish slaughterhouse Ugglarps in August.