RANDERS, Denmark – In a move that will make it one of Germany’s most prominent beef processors, Danish Crown announced its acquisition of Teterower Fleisch. Based in Mecklenburg-Vorpommern, Teterower Fleisch slaughters 110,000 head of cattle per year, about 22,000 of which are organic, in addition to a limited number of hogs and lambs. The privately owned company reports sales of 150 million euros (US$157.5 million) with 187 employees. Terms of the deal were not disclosed.
Traditionally a pork-focused company, Danish Crown President and CEO, Jais Valeur said this transaction is part of his firm’s growth strategy, which includes committing more resources to the beef segment. Danish Crown currently slaughters approximately 90,000 cattle per year at a plant in the city of Husum, in northern Germany and after the acquisition, the two companies will combine efforts to serve international markets.
”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 Valeur.
”We are convinced that we can generate further growth by integrating the German business. We will have access to larger supplies of German raw materials, and the German company will be able to access Danish Crown Beef’s markets worldwide, said Finn Klostermann, CEO of Danish Crown Beef.
The deal is subject to the approval of Germany’s federal cartel office.