SUBSCRIBE

Breaking News on Global Meat Trading and Processing

Headlines > Financial

Read more breaking news

 

 

Danish Crown in Teterower Fleisch takeover

Post a comment
Oscar Rousseau

By Oscar Rousseau+

11-Jan-2017
Last updated on 12-Jan-2017 at 12:40 GMT2017-01-12T12:40:27Z

Danish Crown Beef expect the takeover of Teterower Fleisch to enhance growth prospects
Danish Crown Beef expect the takeover of Teterower Fleisch to enhance growth prospects

Danish Crown is set to become one of Germany’s largest beef processors after the pork giant announced a takeover of slaughterhouse Teterower Fleisch for an undisclosed sum.

In one quick swoop, Danish Crown is set to become the fifth-largest slaughterhouse in Germany and simultaneously enhance its credentials as a major player in northern Europe’s burgeoning organic meat market.
 
The purchase price has not been disclosed, but this site believes the deal is valued in the region of tens of millions of euros. Privately owned Teterower Fleisch has 187 staff and there are no plans to change the workforce immediately. The management team will also stay in place to maintain the company’s strong local connections, but Danish Crown will supplement the team with management resources of its own.

President and group CEO of Danish Crown, Jais Valeur, said the German business “ties in beautifully” with the pork processor’s new 4WD strategy , which aims to position Danish Crown as the market leader in northern Europe.

Organic meat targeted

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 adding value,” said Valeur in a press statement.

Close to 20% of the cattle Teterower Fleisch slaughters annually is organic. The business also slaughters pigs and lambs, but beef is the priority. This focus fits in nicely with Danish Crown’s beef operations in the country, as it already slaughters about 90,000 cattle per year in Husum, northern Germany.

Danish Crown currently operates five cattle plants, four in Denmark and one in Germany, generating around DKK4.3 billion (€500m) in annual revenue with a workforce of 885.

Teterower Fleisch – at a glance
  • Turnover of €150m
  • Slaughters 110,000 cattle annually
  • Workforce of 187
  • Located in Mecklenburg-Vorpommern, northern Germany

‘Further growth’

Danish Crown Beef CEO Finn Klostermann said he was “convinced” that integrating larger access to raw materials would “generate further growth” for both companies. The deal will also allow Teterower Fleisch to access Danish Crown Beef’s markets worldwide.

When Danish Crown announced its 4WD strategy in November 2016, it stressed that Germany no longer held the same strategic importance as Denmark, Sweden, Poland and the UK. In light of this, the acquisition of Teterower Fleisch might seem a little surprising.

Klostermann has addressed this peculiarity, stating more than 50% of Teterower Fleisch’s sales take place outside Germany and, crucially, in the geographic sphere that Danish Crown Beef identifies as growth opportunities: mainly Sweden and southern Europe.

The move will not see Danish Crown enter the “highly competitive” German retail sector; Klostermann said the business did not believe it “can make money there”.

The takeover has been reported to the German federal cartel office (the Bundeskartellamt), which must approve the acquisition before it is finalised.

Post a comment

Comment title *
Your comment *
Your name *
Your email *

We will not publish your email on the site

I agree to Terms and Conditions

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.

Related products

Related suppliers