Orkla moves to buy Swedish bakery ingredients business
Orkla Food Ingredients has moved to purchase Zeelandia Sweden AB, a supplier of margarine, vegetable oils and bakery ingredients to the Swedish market.
The newly acquired business has most of its sales in Sweden, and exports to Finland, the Baltics and Norway. The company sells primarily 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.
Details of the purchase price have not been revealed, with the agreement being subject to the approval of Swedish competition authorities.
“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 makes a good fit with the Credin Group,” says Johan Clarin, Orkla executive VP and CEO of Orkla Food Ingredients.
Zeelandia Sweden AB is currently owned by the Dutch company Koninklijke Zeelandia Groep B.V., which was established in 1900 by the Doeleman family. 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 business had a turnover of EUR 22.9 million (approx. NOK 222.5 million) in 2018. The company is expected to be consolidated into Orkla’s financial statements in the second quarter of 2019.