8 Nov 2018
EUR 104.75 million
Financial institutions and SMEs
|Date of loan:||19 Jun 2018|
|Customer:||Danish Crown A/S|
|Amount in EUR:||EUR 100 million|
|NACE sector / loan type:||Manufacture of food products and beverages|
|Business area:||Industries and services|
The loan has been provided to Danish Crown to finance the acquisitions of DK-Foods in Denmark and of the Gzella Meat Group in Poland, as well as the construction of a new meat processing plant in Pinghu, China.
The acquisition of all shares in DK-Foods, a leading pepperoni producer, was completed in May 2018 and supports Danish Crown’s strategy to become a global leader in canned products, snacks and other profitable segments in food service.
The Sokolow Group, a Polish meat company and subsidiary of Danish Crown, acquired the Gzella Meat Group. Gzella Meat Group operates a processing plant as well as logistic facilities and nearly 250 stores. This acquisition is expected to strengthen the Sokolow Group’s position in Poland and in other international markets.
Further, the loan will finance the construction of a new Danish Crown meat processing and retail product plant in Pinghu, China. Production at the plant will fully be based on Danish raw material. The plant is expected to produce up to 14,000 tonnes of products annually, including fresh meat cuts, fully cooked products and semi-cooked products. The facility will be fully operational in the second half of 2019 and will cater to a market of over 80 million potential consumers.
Danish Crown AmbA is a global meat processing company, and together with its subsidiaries offers various meat products and packages fresh meat. The company is a cooperative owned by approximately 7,166 Danish farmers and has its headquarters in Randers, Denmark.
The acquisition of DK-Foods allows Danish Crown to expand its product offering to increase volumes and provide new sales opportunities. Similarly, the acquisition of the Gzella Meat Group adds a local high-end brand to the Polish product portfolio.
The new meat processing plant in Pinghu, close to Shanghai, will utilise raw material from existing slaughter houses in Denmark. Production at the plant will complement exports and provide access to new business segments. This is expected to enlarge the geographical market for processed meat and secure direct access to a high consumer growth market.
Danish Crown has conducted due diligence of all assets being acquired.
The meat processing facility in Pinghu is located on an industrial development plot designated for food industries. The main environmental aspects from the process are discharges of wastewater, emissions into the air and waste from packaging. These impacts are controlled by the contractor and kept within local standards.