Completion of Swedish Business Acquisition

On September 15, 2015, in Randers, the Swedish competition authorities gave their approval for KLS Ugglarps AB, a fully owned subsidiary of Danish Crown, to acquire a majority share in Dalsjöfors Slakteri, a slaughterhouse located near Borås, east of Gothenburg. Jonas Tunestål, CEO of KLS Ugglarps, expressed his delight at the completion of the agreement. He stated that the next steps would involve integrating Dalsjöfors Slakteri into Danish Crown and optimizing their operations. He also mentioned the need to determine the necessary investments to achieve the mutual benefits anticipated by both parties. Danish Crown initially purchased a share in KLS Ugglarps in 2007. Since then, the company has evolved into a more robust and reliable partner for Swedish farmers, the Swedish retail sector, and the Swedish meat industry. KLS Ugglarps operates primarily in the Skåne and Kalmar regions, while Dalsjöfors Slakteri is located in Borås in Västra Götaland, east of Gothenburg. Both companies slaughter pigs and cattle and primarily sell their products to the Swedish retail sector. This partnership will enhance KLS Ugglarps' coverage in both southern and central Sweden. Kjeld Johannesen, Group CEO of Danish Crown and Chairman of the Board of Directors of KLS Ugglarps, stated that the acquisition of a majority share in Dalsjöfors Slakteri would significantly increase the supply of pigs and cattle. He emphasized the importance of access to raw materials for the continued development of their partnership with the Swedish retail sector. He described the acquisition as a crucial step in strengthening KLS Ugglarps as an asset for Danish Crown and its owners. Starting from the fiscal year 2015/2016, KLS Ugglarp's acquisition of the majority share in Dalsjöfors Slakteri is expected to increase the Danish Crown Group's revenue by approximately DKK 1 billion.