Danish Crown acquires DK-Foods
Danish Crown has obtained pepperoni business DK-Foods, with the business set to operate as a separate unit under Tulip Food Company.
The deal is expected to assist Danish Crown in its aim to become a major provider of pizza toppings.
Kasper Lenbroch, CEO at Tulip Food Company, said: “We’re delighted that the deal has fallen into place. In acquiring DK-Foods, we are acquiring a focused and unique company which, since its establishment in 2003, has enjoyed impressive growth.
“At Tulip Food Company, our strategic focus internationally is on four categories: bacon, canned products, snacks and pizza toppings, so we’re looking forward to incorporating a well-run, agile and fast-moving business.
“The acquisition of DK-Foods represents a giant leap forward when it comes to realising our bold ambitions within a category which is experiencing growth in many markets, and the acquisition will bring us even closer to our pizza customers.”
Danish Crown has been DK-Foods’ preferred supplier of raw materials for several years. At the beginning of 2016, DK-Foods sold 70% of its shares to Maj Invest Equity, while the executive board, comprising Steffen Ramsgaard and Per Fischer Larsen, retained the remaining 30%.
In taking over the company, Danish Crown is acquiring all the shares in DK-Foods, but Per Fischer Larsen and Steffen Ramsgaard will remain on the executive board. They will report to Kasper Lenbroch.
Tulip already produces a range of pizza toppings, including pepperoni, at its factory in Svenstrup south of Aalborg. With the acquisition of DK-Foods, it will increase its production capacity significantly, and while the clear focus on foodservice and retail markets remains, the Svenstrup operation will also establish capacity for production of heat-treated products for the Chinese market.