Orkla Expands its Baltic Operation by Acquiring Strong Local Brands
Norwegian food group Orkla has entered into an agreement with Nordic Partners Food to purchase NP Foods Group including the Laima, Staburadze, Gutta, Margiris and Staburadzes Konditoreja brands. The acquisition, for an undisclosed price, will nearly double the scale of Orkla’s Baltic operations, making Orkla one of the largest consumer goods companies in the region.
NP Foods had a consolidated turnover of Eur77.1 million in 2013, with a normalised operating profit (EBITDA) of Eur7.5 million. The company has four factories in Latvia and one in Lithuania, and a total of 1,100 employees.
“With a history dating back more than 140 years, Laima is one of the strongest confectionery brands in the Baltic region. The acquisition of Laima and other well-established brands is strategically important to Orkla, and will significantly strengthen our foothold in the region,” says Orkla President and CEO Peter A Ruzicka.
The iconic chocolate brand Laima has a market share of more than 30% in the Latvian chocolate market. The local Selga, Staburadze, Gutta, Everest, Fresh Walk and Pedro brands will also boost Orkla’s presence in the Baltic biscuits, cakes, juice, water and ready meal markets
Orkla is already represented in the Baltic region through the branded consumer goods companies Spilva and Latfood (Latvia), Kalev and Põltsamaa Felix (Estonia) and Suslavičius-Felix (Lithuania), which hold solid market positions in the confectionery, ready meals and ketchup segments.
“We have a strong portfolio of local brands with leading market positions. The newly acquired companies are a good strategic fit for Orkla, and will strengthen our position as the leading consumer goods company in the region,” says Christer Åberg, CEO of Orkla Confectionery & Snacks.
Under the acquisition agreement, Orkla will purchase 100% of the shares in the companies held by Nordic Partners Foods, which is owned by the Latvian investment company Nordic Partners and the Icelandic fund BIL.
Completion of the transaction is subject to approval from the Latvian, Lithuanian and Estonian competition authorities.
Orkla is a leading supplier of branded consumer goods and concept solutions for the retail, food service and bakery markets in the Nordic countries and the Baltics, and to selected markets in Central Europe, Russia and India. In 2013, Orkla’s turnover totalled NOK 33 billion, and the group had around 17,000 employees.
