Arla Foods sells its packaging subsidiary
Danish firm Arla Foods sells Danapak Flexibles to Schur Flexibles Group.
Danapak Flexibles A/S
Schur Flexibles Group
Arla Foods has reached an agreement to sell its packaging subsidiary Danapak Flexibles A/S to Austria-based Schur Flexibles Group. The takeover is expected to have effect by July 1st 2014, subject to approval by the relevant competition authorities.
Danapak Flexibles is a Denmark-based supplier of high-quality packaging for companies in the pharma, dairy, and food industries. Founded in 1955 by the Danish Dairy Board, the company has since been owned by several companies in various constellations, also partly owned by Arla.
In 2009, Arla took over the full ownership of the subsidiary with intentions to prepare the company for a sale to the right buyer within the packaging industry. Meanwhile, in all significant matters, Danapak Flexibles has continued to operate as a stand-alone business. Following years of negative results, Danapak Flexibles has made a successful ‘turn around’ in recent years.
“We believe this is a ‘win-win’ situation for all parties involved—for Danapak, for Schur Flexibles and for Arla. Over the past several years Arla has sold off subsidiaries that do not have a direct link to dairy production in order to focus on our core business. Since it is not within Arla’s core business to produce packaging, we are no longer the right owner of Danapak, who will be better suited under new ownership that can take the company to the next level in its future development,” says Arla Foods vice-chief executive officer Povl Krogsgaard.
The deal is expected to close on July 1, 2014, upon approval of relevant national competition authorities.
Danapak is a Denmark-based supplier of a strong niche assortment of high-quality flexible packaging within its three core segments: Pharma, Dairy and Food, with 2013 revenues of 400 million DKK Cdn $80.3 million). With 190 employees, it’s main headquarters is located in Slagelse, Denmark, with an additional printing facility in Horsens, Denmark. Its customers include companies such as GlaxoSmithKline, Arla Foods, and Nestlé.
Arla Foods is an international dairy company owned by 12.600 farmers from Denmark, Sweden, the UK, Germany, Belgium and Luxemburg. It’s considered to be one of the major players in the international dairy arena, with a wide range of dairy products of highest quality. It is also the world’s largest manufacturer of organic products.