Norwegian food group Rieber & Søn is to buy local caker maker Lierne Bakery in a deal that could be worth up to NOK132.7m (US$24m).

Rieber & Søn said the acquisition of Lierne Bakery, which it described as "Norway's leading producer" of griddle and party cakes for the country's grocery and catering channels, would help its own business grow in the cake sector.

"Lierne Bakery is an attractive acquisition which will strengthen us in several key categories," Ingrid Tjøsvold, director of Rieber & Søn's Norwegian business unit, said today (26 May).

The deal, expected to close next month, will see Rieber & Søn pay a fixed amount of NOK80.7m. A variable amount of up to NOK52m depending on "specific targets" being met in 2012 and 2013, Rieber & Søn said.

Lierne Bakery founder John Helge Inderdal, who created the business 21 years ago, said he was "very pleased" that Rieber & Søn was buying the firm.

"My wish has been to find an industrial partner who could carry on my lifework. Rieber & Søn has all the competence needed to strengthen, continue and develop this cornerstone business in the municipality of Lierne," Inderdal said.

Last year, Lierne Bakery generated around NOK89m in revenue.