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Danish Crown increases its focus on beef with German acquisition

PW ReportersBy PW ReportersJanuary 11, 20172 Mins Read
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Danish Crown CEO Jais Valeur

Danish Crown has acquired a major cattle slaughterhouse in Germany, stating that the move “ties in beautifully” with its new 4WD strategy while also enabling its beef division to account for a “large share” of its total business.

While the acquisition concerns the cattle slaughterhouse Teterower Fleisch, the fifth- largest cattle slaughterhouse in Germany, the plant also slaughters pigs and lambs.

“We want our beef division in particular to grow and to account for a larger share of Danish Crown’s total activities, while at the same time focusing more on organic products and value adding,” said Danish Crown’s president and group CEO, Jais Valeur (pictured above).

Teterower Fleisch, located in Mecklenburg-Vorpommern, a federal state in what was formerly East Germany, has an annual turnover of 150 million euro, slaughters 110,000 cattle annually, has 187 employees and is privately owned. Close to 20% of the cattle slaughtered by Teterower Fleisch are organic.

Danish Crown also said that following the takeover of Teterower Fleisch, the plan is to run Danish Crown Beef’s existing slaughterhouse activities in Husum, also in Germany, and the newly acquired business as an integrated unit, focusing on specialisation and on utilizing synergies in the international markets that both companies serve.

Agreement on the acquisition of Teterower Fleisch has been reported to the German federal cartel office (the Bundeskartellamt), which must approve the takeover before it can be finalised.

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