Rieber & Søn Acquires Lierne Bakery

Over the last few years, Lierne Bakery has had a high pace of innovation in the area of griddle cakes and party cakes, allied with core expertise in the freezing and thawing of products through the value chain

5/26/2011 --- Rieber & Søn is acquiring Lierne Bakery, Norway’s leading producer of griddle cakes and party cakes for the grocery and catering market.

Rieber & Søn intends to grow in the cake segment, and Lierne Bakery is an attractive acquisition which will strengthen us in several key categories, says Ingrid Tjøsvold, director of Rieber & Søn’s Norwegian business unit.

We also believe that the integration of Lierne Bakery with our business will make it possible to achieve considerable synergies in purchasing, production and sales.

Over the last few years, Lierne Bakery has had a high pace of innovation in the area of griddle cakes and party cakes, allied with core expertise in the freezing and thawing of products through the value chain. Rieber & Søn’s core competence relates to product development, taste development and brand building.

Lierne Bakery has been built up over a period of 21 years by the founder and principal shareholder John Helge Inderdal. He is very pleased that that the business is being acquired by Rieber & Søn.

- My wish has been to find an industrial partner who could carry on my lifework. Rieber & Søn has all the competence needed to strengthen, continue and develop this cornerstone business in the municipality of Lierne, says Inderdal.

Last year, Lierne Bakery had a turnover of approximately NOK 89 million. The company has 110 employees and is located in the municipality of Lierne in North-Trøndelag.

The purchase price is based on an Enterprise Value of NOK 132.7 million and comprises a fixed amount of NOK 80.7 million and a variable amount of up to NOK 52 million. The variable amount is contingent upon the realisation of specific targets in 2012 and 2013. The takeover is expected to take place in June 2011.