Denmark-based meat group Danish Crown has moved to beef up its presence in Sweden with the acquisition of Charkuterifabriken Sverige.

The co-operative, which signed the agreement for an undisclosed sum, said the transaction remains subject to the approval of Sweden’s competition office.

Charkuterifabriken Sverige, which has a factory in Halmstad on Sweden’s south-west coast, makes products including sliced sandwich cold cuts, bacon and roast pork. The company generated a turnover of “just over” SEK1bn (US$114.2m) in its most recent financial year, Danish Crown said in a statement. It has around 200 staff.

By contrast, KLS Ugglarps, Danish Crown’s Swedish subsidiary, has four slaughterhouses and three charcuterie factories. Described by Danish Crown as “the market leader”, KLS Ugglarps’ sales in the financial year to the end of September were SEK7bn. It employs 1,500 workers.

“It is part of our long-term strategy to create more growth within processed products. The contribution from Charkuterifabriken Sverige AB’s fast-growing business and innovative team will be an important part of our company,” Jonas Tunestål, the CEO of KLS Ugglarps, said.

Approached by Just Food, Danish Crown declined to comment on how much it had agreed to pay for Charkuterifabriken Sverige. It also refused to be drawn on whether it expected to receive regulatory clearance for the deal.