Orkla Brands International is planning to sell two of its Polish businesses, Kotlin and Elbro, to Agros Nova.
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Kotlin manufactures ketchup, tomato-based sauces, jams, ready meals, pizza and preserved vegetables, while Elbro’s products include frozen dumplings, noodles, ravioli and pirogues. The companies’ consolidated sales totalled NOK240m (US$44.7m) in 2007.
Orkla said that it has made a number of operational improvements since it acquired the companies – Kotlin in 1997 and Elbro in 2004.
Kotlin and Elbro have undergone an extensive reorganisation programme, which has seen the number of employees cut and the product portfolio streamlined, but Orkla is unhappy with the companies’ performance.
“We are not satisfied with the companies’ market positions and financial performance in the Polish market. It is time for a new owner, who can help strengthen the companies’ future possibilities in the Polish market,” Paul Jordahl, MD of Orkla, said.
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By GlobalDataAgros Nova manufactures jams, soups, juices and preserved vegetables.
“Through this acquisition our business will expand in sectors where we are already strong and also into new categories,” a spokesperson for Agros Nova told just-food. “We are pushing our business towards growth in Poland.”
The sale is subject to the approval of the Polish competition authorities.
Financial details of the deal were not disclosed.
