Target Information

Delika Food Group A/S (DFG), owned by Erhvervsinvest, has entered into a binding agreement to acquire the operations of Skare Food A/S, which includes two meat processing facilities located in Christiansfeld and Aarhus. This acquisition is conditional upon obtaining approval from the Danish Competition and Consumer Authority.

The facilities in Christiansfeld and Aarhus have been a provider of high-quality deli products for both the Danish market and for export for many years. The workforce at these factories consists of 193 employees, all of whom will be transferred to DFG as part of this acquisition.

Industry Overview in Denmark

The Danish food industry is characterized by its commitment to quality, with a strong emphasis on sustainable practices and innovation. As one of Europe’s largest meat producers, Denmark has established itself as a leader in the food sector, especially in processed meat products, which have gained popularity both domestically and abroad.

Furthermore, Danish companies benefit from robust export connections, allowing them to reach various international markets. The country’s focus on high standards of food safety and quality assurance has made Danish food products highly desirable in many regions, particularly in neighboring countries such as Germany.

With a growing global demand for premium meat products, Danish food manufacturers are well positioned to expand their market share. This dynamic offers opportunities for companies like DFG, which are looking to enhance their production capabilities and product offerings.

Rationale Behind the Deal

The acquisition of Skare Food’s operations will significantly enhance DFG’s production capacity and notably increase its export share. As stated by Thomas Marstrand, Managing Partner and Director at Erhvervsinvest, the additional range of products from the acquired facilities is expected to complement DFG’s existing offerings, thus ensuring competitive product ranges for the Danish retail market, all produced locally.

This strategic expansion allows DFG to leverage the reputation of Skare Food in the market, ensuring continued growth and customer satisfaction both in Denmark and abroad.

Information about the Investor

Erhvervsinvest is focused on investing in small to medium-sized Danish companies, particularly during times of generational and ownership transitions. The firm’s investment portfolio includes notable Danish names such as AP Pension, Velliv, Nykredit, Spar Nord Bank, Sparekassen Kronjylland, and AKF Invest CPH.

Having gained extensive experience in nurturing and developing businesses, Erhvervsinvest aims to contribute to the sustained growth of its portfolio companies, ensuring they remain competitive in the market. This commitment to quality investment strengthens DFG’s position in the ever-evolving food industry.

View of Dealert

From an analytical perspective, the acquisition of Skare Food A/S by Delika Food Group appears to be a sound investment strategy. This transaction not only expands DFG’s operational footprint but also diversifies its product range, which is essential for maintaining a competitive edge in the saturated food market.

The existing workforce at Skare Food brings valuable expertise to DFG, and the success of this acquisition will heavily depend on seamless integration and retention of these skilled employees. The ongoing support from customers following the transition will also be crucial in ensuring a stable revenue flow.

Moreover, considering the increasing demand for high-quality meat products in both local and international markets, DFG is well positioned to capitalize on this trend. The focus on product quality and local production underscores DFG’s commitment to meeting evolving consumer preferences.

In summary, by acquiring Skare Food A/S, Delika Food Group is not only reinforcing its competitive stance within the industry but is also laying the groundwork for future growth and expansion.

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