Orkla drives forward purchase deal of Nordic confectionery firm Bubs Godis
Scandinavia’s Orkla confectionery and snacks group has reportedly forged ahead with its deal for a full acquisition of fellow Nordic business, Bubs Godis, within the Swedish sweets market, reports Neill Barston.
The newly-purchased company, which is active across the region, has developed popular pick-and-mix favourites sold in bulk and bags, with sustainability being a distinguishing factor for the business – that has a number of vegan offerings.
Ingvill T. Berg, CEO of Orkla Confectionery & Snacks, welcomed the move, which he believed would strengthen its business further. She said: “This acquisition is well aligned with our strategy of strengthening our positions in the Nordic markets. Bulk confectionery is a growing category and even when it is sold as pick & mix, consumers prefer well-known brands like Bubs,”
The purchase of Bubs, which has reportedly averaged sales growth of 10 per cent for the past decade and has a turnover of SEK 211 million, will be carried out through Orkla Confectionery & Snacks Sverige, which holds a strong position in the snacks and biscuits categories.
Notably, the acquired business will be operated as a subsidiary of Orkla Confectionery & Snacks Sverige and its present CEO Niclas Arnelin will remain in the company, with the deal set to be completed during the next few months, though its terms have not been revealed.
“Bubs is a robust company and a good brand that will complement the rest of our portfolio and give us a solid base for continued growth,” says Patrick Axzell, CEO of Orkla Confectionery & Snacks Sverige.
The sellers are members of the Lindström family, who established the company in 1992. In addition, CEO Niclas Arnelin has a small ownership interest that is also part of the sale. “We are glad to pass the baton to Orkla and are confident that they will further develop the company and take it to the next level,” says Ulrik Lindström on behalf of the owner family.
“To continue this growth journey, we will build further on the company’s strategy, while also exploiting the advantages of the company becoming part of Orkla. In distribution, among other things, we see opportunities to make good use of our becoming a bigger company,” says Patrick Axzell.