Danish Crown and Ugglarps in Cooperation

Randers, 17th August 2007

Danish Crown plans to take over pig slaughterhouse and processing factory in Skaane

Danish Crown and the owners of Ugglarps Slakteri AB have signed a letter of intent concerning Danish Crown’’s takeover of the Swedish company consisting of a pig slaughterhouse and a processing factory. Ugglarps Slakteri AB is one of the largest companies in the Swedish pigmeat industry.
- Ugglarps is a company with a strong profile on the Swedish market, which is one of Danish Crowns primary market areas. We have for a long time been screening the development opportunities on the Swedish market with a view to strengthening our sales through local presence, says Danish Crown CEO Kjeld Johannesen.

Danish Crown and the subsidiary Tulip Food Company are already offering the Swedish market a strong product range, and the takeover of Ugglarps Slakteri will add to this strength. Danish Crown has for a long time focused on the opportunities to take in slaughter pigs from Swedish pig producers. The acquisition of the Ugglarps pig slaughterhouse will open up for a strong regional network of pig producers, and it will enable the slaughtering of the Swedish pigs in the local slaughterhouse in Skaane (Southern Sweden).
- We believe that the Swedish farmers will be interested in a cooperation with the combination of a local and global company constituted by Danish Crown and Ugglarps, says Kjeld Johannesen.

The majority owner of Ugglarps Slakteri AB, Tommy Olsson, will continue as a member of the Board of Ugglarps Slakteri. At the same time Tommy Olsson will, in his own settings, continue his activities in the beef area in the company Team Ugglarp AB, based in the cattle slaughterhouse in Hörby. In connection with the transaction Danish Crown will take over a small shareholding in this company.
- In recent years I have concentrated on the development of the cattle business in Hörby, and it has therefore been a natural process for me to find a new model for the future of my other activities, says Tommy Olsson.

The takeover of the Ugglarps activities will take place later this year when the due diligence process has been completed and necessary approvals are available.


Facts
Ugglarps Slakteri AB has a turnover of approx. SEK 600 million, and is one of the largest private pigmeat companies in Sweden. The company sells fresh meat and processed meat products on the Swedish market – under the retail trade’’s private labels as well as under the Ugglarps brand.

The Ugglarps company has a processing factory in Fosieby near Malmö, and the pig slaughterhouse is located in Ugglarp near Trelleborg. The company is headed by Managing Director Thomas Olander.

The Ugglarps pig slaughterhouse employs approx. 170 persons.

Visit www.ugglarps.com


Danish Crown – including Tulip Food Company – have already a turnover from the sale of meat and meat products to the Swedish market of approx. SEK 1½ billion. Combined with the decision to invest in a production plant for retail packing of fresh meat in Sweden, this acquisition will give a considerable increase in the activities on the Swedish market.

With a turnover of DKK 48 billion, the Danish Crown Group is one of the world’’s largest companies in the meat industry