Orkla Food Ingredients acquires UK fudge and toffee manufacturer Confection by Design
01 Jul 2019 --- Orkla Food Ingredients has signed and completed an agreement to purchase British fudge and toffee manufacturer Confection by Design Ltd., through its wholly-owned subsidiary NIC Enterprises Limited. The parties have agreed not to disclose the purchase price. The company will be consolidated into Orkla’s financial statements as of July 1, 2019.
Confection by Design offers fudge and toffee to ice cream manufacturers, bakeries and confectioners. Approximately two-thirds of its portfolio is distributed by Orkla’s UK subsidiary Orchard Valley Foods. Most of the company’s sales are in the UK (an estimated 80 percent), while exports to other countries account for the remaining 20 percent.
The privately-owned business was established in 1988 and the company’s headquarters and production facilities are located in the north of England.
The Confection by Design brand has grown its turnover to £5.7 million (US$7.2 million) in the financial year ending 30 June 2019.
Orkla Food Ingredients currently holds a strong position as a supplier of bakery ingredients and ice cream ingredients and accessories in the Nordic region and selected countries in Europe. In the UK, Orkla Food Ingredients has built up a solid position through its subsidiaries NIC UK, Orchard Valley Foods and County Confectionery.
“The purchase of Confection by Design is strategically right and will complement Orkla Food Ingredients’ position as a supplier of inclusions and accessories to the bakery, chocolate and ice cream market,” says Tor Osmundsen, CEO of NIC Group.
In recent months, Orkla has been hot on the acquisition trail with several exciting moves announced. In April, the company announced a deal to buy Zeelandia Sweden AB, a supplier of margarine, vegetable oils and bakery ingredients to the Swedish market, following a string of European acquisitions.
In March, Orkla entered into an agreement to purchase the majority of the shares in the Greek company Stelios Kanakis Industrial and Commercial S.A., manufacturer of raw materials for confectionery, bakery and ice-cream products. Further moves were made in the purchasing of Asteriscos e Reticências S.A., a producer of fermented tea-based health drinks sold across Europe under the Captain Kombucha, and Lecora, specializing in frozen and chilled vegan and vegetarian dishes.
By Benjamin Ferrer
