Owners of Mecom Group and Tulip are in acquisition talks

Randers, 30th August 2007

Owners of Mecom Group and Tulip/Danish Crown are in acquisition talks.

Tulip Food Company will file an application with the Slovak anti-monopoly authority shortly.

Tulip Food Company and the owners of Mecom signed conditional agreement on acquisition. The agreement reflects the strategy to internationalise Tulip Food Company even further and the intention of Mecom Group owners to find a suitable partner for further development of the Mecom Group.

“Mecom is an attractive company for Tulip Food Company. It has a very strong market position in Slovakia, it has an impressive product assortment of high quality and it has delivered a solid growth in recent years. Besides, Mecom has modern production facilities, which are fully comparable with Tulip´s other manufacturing sites”, says Flemming N. Enevoldsen, CEO of Tulip Food Company.

“I am convinced that the combination of Mecom's strong foothold on the Slovak market and the growing prospect on the other CEE markets together with Tulip’’s and Danish Crown’’s international presence will provide unique synergies and growth opportunities to the mutual benefit of both, Mecom and Tulip”, said Jan Molnar, president and owner of Mecom.   

The Mecom Group currently operates two modern production sites in Slovakia, as well as a distribution and retail network. Both production sites have been completely modernised within the last 5-6 years. 

 “Tulip´s strategy is based on two growth avenues: Organic growth in existing markets and acquisitive growth by finding profitable and well-run companies in new markets. Such companies will create access to attractive markets”, says Flemming N. Enevoldsen, CEO of Tulip Food Company.

“I strongly believe that once the final agreement is concluded, Mecom as part of the Danish Crown Group can continue to develop and to take full advantage of the development potential in the region. By becoming part of Tulip Food Company´s international network, possibilities will be opening for export from the factories in Slovakia to Tulip´s existing sales markets in Europe – as well as for supplementing Mecom’’s product range with Tulip products from other countries, says Jan Molnar.

The transaction is subject to conditions including the approval of the relevant anti-monopoly authorities.

Facts

Tulip Food Company is a fully owned subsidiary of Danish Crown, one of Europe´s largest meat groups. Tulip Food Company has approximately 2,300 employees and achieved a turnover in 2006/07 of EUR 640 million. Tulip Food Company´s annual turnover will after the deal amount to EUR 760 million. 

Mecom is a leading Slovak meat processing company. In 2006 the company realised consolidated sales of EUR 119 million, including the turnover of Hrádok Mäsokombinát, which was acquired during the year. The Mecom Group has approximately 1,300 employees.