01/04/2019 | International

Orkla expands its European position with acquisitions in Greece, Sweden and Portugal

The Nordic company group Orkla, listed on the Oslo Stock Exchange, has announced three acquisitions in the sectors Ingredients, Healthy Drinks and Food, as it looks to expand its portfolio of brands across Europe.  

The business unit Orkla Food Ingredients is buying a majority stake in Greek ingredients company Stelios Kanakis Industrial and Commercial; alongside with the group's purchase of Sweden’s Lecora, a manufacturer of chilled food and ready meals, and a minority investment in the owner of Portugal-based Captain Kombucha.

Founded in 1985, the family-owned company Kanakis produces confectionery, bakery and ice cream ingredients and receives an annual turnover of € 20.2 m. Orkla has entered into an agreement agreement to acquire approx. 65.8% from Stelios and Maria Kanakis at a purchase price per share of € 4.35. In connection with this agreement, Orkla has made a voluntary tender offer to all Kanakis shareholders at an offer price of€ 4.36 per share.

Through its subsidiary Orkla Foods Sverige, Orkla has signed and completed an agreement to purchase Lecora, headquartered in Vadstena. The company had a turnover of SEK 95.9 m (€ 9.2 m) in 2018, which was primarily generated in Sweden. Finally, Orkla has signed and completed an agreement to purchase 43.5% of the shares of Portuguese company Asteriscos e Reticências, producer of fermented tea-based health drinks that are sold under the Captain Kombucha brand. Last month, Orkla announced that CEO Peter Ruzicka will step down from his role this May after more than five years in charge. The company’s operating revenue in 2018 grew by 3% to NOK 40.84 bn (€ 4.2 bn).