Arla Foods has reached an agreement to sell its packaging subsidiary Danapak Flexibles A/S to Austrian-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 pharmaceutical, 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, 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,” says vice CEO in Arla Foods, Povl Krogsgaard.