Azelis signs agreement to acquire Orkila, further leveraging Africa and Middle East footprint
02 Oct 2019 --- Azelis has signed an agreement to acquire 100 percent of Orkila, also a specialty chemicals and food ingredients distributor although focused on Africa and the Middle East. The move comes during a time when Africa has been experiencing economic acceleration, providing Azelis with the opportunity to expand in the region. The transaction is expected to be completed in the next four months and will see with over 220 employees joining the Azelis team. The financial details of the deal have not been disclosed.
Speaking to FoodIngredientsFirst, Anna Bertona, Azelis EMEA Chief Executive Officer and President says: “Due to the fact that Africa is experiencing an economic acceleration, we noticed that there is an increasing shift towards specialty food ingredients. This allows us to leverage our knowledge on this trend.”
Anna Bertona, Azelis EMEA Chief Executive Officer and PresidentOrkila serves several thousand customers across Africa and the Middle East, ranging from major multinationals to smaller local producers, all seeking specialty products and a reliable partner to achieve success in the growing marketplace. Headquartered in Beirut, Lebanon, the Orkila group runs offices in 13 countries and is active in more than 30 countries in the region.
Orkila will be integrated into the overall Azelis company structure, allowing it to benefit from Azelis’ expansive range of tools. This will allow the company to have more focus on commercial activities, while also continuing to maintain its local entrepreneurial culture under a global umbrella, she explains.
“The strategies of Azelis and Orkila were already aligned before this acquisition. It will be beneficial for both companies since we can exchange knowledge on the global level and leverage our combined operational excellence,” Bertona continues. “Secondly, but also very important, is that the existing Azelis principals will gain access to Orkila’s broad Africa and Middle East network.”
Azelis has been increasingly focusing on Africa and the Middle East lately by expanding its footprint in the region. “The population of Africa is projected to reach 1.7 billion by 2030 and more than 80 percent of this growth will occur in cities,” says Dr. Hans Joachim Müller, Azelis Chief Executive Officer and President.
“African industries are expected to double production in the period 2015-2025 and the continent’s annual investment in infrastructure has doubled since the beginning of the century. In short, we see enormous potential in Africa, and this acquisition will give us a significant tailwind which we are extremely excited about,” he adds.
Using company synergy
According to the company, the acquisition creates a unique combination of Azelis’ innovation and formulation potential, its EcoVadis Gold status and international reach on one side and the strong local presence, regional expertise and excellent reputation of Orkila on the other.
Like Azelis, Orkila is focused on promoting specialty service offerings and has an application lab in Egypt that serves both food and personal care customers. To ensure business continuity, Audrey Sacy Aris and Christophe Sacy, as well as other senior managers, will continue to run the operations going forward.
“We have been impressed by Orkila’s management, the similarity of our business models and excellent cultural fit. We know that many of our principals are currently looking into strengthening their activities in Africa. Combining the strength of a leading regional specialty distributor with the strength of Azelis will result in an excellent and unique platform for organic growth,” continues Dr. Müller.t.
Antoine Sacy, Founder, Chairman and CEO of Orkila, also comments: “After almost 15 years of growing on a stand-alone basis, it is time for us to move into global waters. Joining a well-established global player such as Azelis will enable us to continue to deliver high-quality products and services. The fact is that now, we will be able to tap into Azelis’ strong international presence, exchange of knowledge on the global level and leverage our combined operational excellence.”
“Azelis has successfully grown its organic presence in Africa over recent years by establishing grassroots operations in Morocco, Ivory Coast and Tunisia. A combination of Azelis and Orkila is expected to further cement Azelis’ relationship with key principals, sharing aligned growth ambitions,” Bertona concludes.
By Elizabeth Green
