Orkla expands in UK confectionery ingredients market
Norwegian bakery ingredients supplier Orkla Food Ingredients has acquired a majority stake in Orchard Valley Foods for an undisclosed sum.
Through its wholly-owned subsidiary NIC Enterprises, Orkla Food Ingredients has signed and completed an agreement to purchase 85% of the shares in the British sales and distribution company Orchard Valley Foods.
Based in Tenbury Wells, Orchard Valley supplies ingredients and accessories to the UK bakery, chocolate and ice cream market. Most of its turnover is generated in the UK, but the company also has increasing exports to Europe.
Orkla Food Ingredients, meanwhile, distributes bakery ingredients in the Nordic region and selected countries in Europe.
“Orchard Valley and Orkla Food Ingredients are a good fit,” said Pål Eikeland, Orkla EVP and CEO of Orkla Food Ingredients.
“The acquisition of Orchard Valley complements Orkla’s current position in the UK ice cream ingredients and accessories segment. It also strengthens our position in categories that are well known to Orkla Food Ingredients. This acquisition offers potential for increased exports and synergies with our present operations.”
The agreement also includes an option to purchase the remaining 15% of the shares of Orchard Valley. The company will be consolidated into Orkla’s financial statements from 1 April 2017. Financial terms of the deal have not been disclosed.
In the financial year ending 31 May 2016, Orchard Valley posted a turnover of £23.9 million ($29.8m) and normalised EBITDA of £2m.