Strengthening bakery: Orkla continues acquisition spree with Zeelandia Sweden purchase
16 Apr 2019 --- Orkla is expanding its acquisitions further with its latest deal to buy Zeelandia Sweden AB, a supplier of margarine, vegetable oils and bakery ingredients to the Swedish market. The deal marks the latest purchase for Orkla which continues on its acquisition trail following a busy start to the year which also saw the company buy a Greek ingredients supplier and take a stake in kombucha and vegetarian foods makers.
Through its wholly-owned subsidiary Orkla Food Ingredients AS, Orkla has entered into an agreement to purchase Zeelandia which says this decision fits within the company’s business strategy to build leading and sustainable market positions in Europe.
Terms of the deal have not been disclosed.
Zeelandia Sweden AB – which had a turnover of €22.9 million (US$26 million) in 2018 – has most of its sales in Sweden, and exports to Finland, the Baltics and Norway, primarily selling to the bakery industry. Following the transaction, the company’s name will be changed to Credin Sverige AB, and the company will become part of Credin Group.
“The acquisition of Zeelandia Sweden AB is strategically right for strengthening Orkla’s position and production capabilities in our Nordic home markets in categories with which Orkla Food Ingredients is very familiar. Their product portfolio is a good fit with the Credin Group,” says Johan Clarin, Orkla Executive VP and CEO of Orkla Food Ingredients.
Earlier this month, Orkla entered into an agreement to purchase the majority of the shares in Stelios Kanakis Industrial and Commercial S.A., which is considered a market leader in the sale and distribution of confectionery, bakery and ice cream ingredients in Greece.
In March, Orkla also completed an agreement to purchase 43.5 percent of the shares of the Portuguese company Asteriscos e Reticências, S.A., which produces fermented tea-based health drinks that are sold in Europe under the Captain Kombucha brand. In the same month, the company also expanded its out-of-home sector in Sweden, through its wholly-owned subsidiary Orkla Foods Sverige, Orkla completed an agreement to purchase Lecora, a Swedish manufacturer of frozen and chilled vegan and vegetarian dishes.
Zeelandia Sweden AB is currently owned by the Dutch company Koninklijke Zeelandia Groep B.V. The company that is being sold has around 60 employees and is headed by CEO Karin Andersson. The company’s headquarters and production facilities are located in Stenkullen, near Gothenburg, Sweden.
The company is expected to be consolidated into Orkla’s financial statements in the second quarter of 2019.
The agreement is subject to the approval of the Swedish competition authorities.
