Orkla has struck again in M&A, with the Nordic business pouncing on Sweden-based confectionery maker Bubs Godis.
Bubs Godis is the second acquisition announced this week by Norway-headquartered Orkla on the back of a deal for Hungarian sandwich business Khell-Food. That transaction was conducted through Orkla Foods Europe, one of 12 new business divisions spun out under a group reorganisation by president and CEO Nils Selte.
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Selte was installed into those roles in April after joining the business from Oslo-based investment group Canica, Orkla’s largest shareholder. In October, the new company chief specified acquisitions, joint ventures and stock-market listings would be on the cards, along with divestments.
Bubs Godis generated a SEK211m (US$20.2m) turnover in the year to 30 June and supplies pick & mix assortments in bags and in bulk, with the “majority” of its portfolio made up of vegan confectionery products.
Ingvill Berg, the CEO of Orkla Confectionery and Snacks, another of the new divisions, 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.”
Based in the Swedish city of Jönköping, Bubs Godis was founded in 1992 by the Lindström family, who have sold their stake to Orkla. CEO Niclas Arnelin also has a “small” equity ownership, which is part of the sale.
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By GlobalDataArnelin will remain with the business when it becomes a subsidiary of Orkla Confectionery and Snacks Sverige. The sale, for which financial terms have not been disclosed, is expected to be completed in the first quarter.
“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,” family member Ulrik Lindström said.
