Norwegian food group Orkla has added another acquisition to the year’s list after signing an agreement with Danish company Easyfood.
Copenhagen-based Orkla has snapped up a 90% share in Easyfood – a manufacturer of bread-based convenience products – via its subsidiary Orkla Foods Denmark, the company said in a statement today (21 December).
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The deal has been valued at DKK330m (US$50.4m) and is subject to the approval of the Danish competition authorities.
Orkla continues to make acquisitions despite a pledge made by group president and CEO Peter Ruzicka in November to reduce “the complexity of its portfolio” by focusing on fewer categories. While the company offloaded its soy sauces brand Mrs Cheng’s earlier this month, purchases have outweighed any business disposals.
In November, Orkla snapped up Kotipizza Group, the largest pizza chain in Finland. The company also bought County Confectionery in the UK in October, Denmark’s ingredients manufacturer Igos in July, and Swedish sales and distribution company Werners Gourmetservice in May.
Carsten Hänel, the chief executive of Orkla’s food business in Denmark, commented on the latest purchase: “Easyfood is well-positioned in a growing market for convenience products. Through our acquisition of Easyfoood, we are strengthening our position in the out-of-home market and in channels with higher growth than traditional grocery stores.”
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By GlobalDataEasyfood’s operations are housed under one roof in Kolding, Denmark, where the company was founded in 2000. The majority of the business was bought from owners Flemming Paasch and Hemming Van. The former will remain as chief executive of the firm and also the minority shareholder of the company, which employs 144 people.
Its customers include in-store bakeries, convenience stores, cafes, petrol stations and foodservice outlets. Most of Easyfood’s DKK316m turnover is generated from the domestic market, but exports are growing, and currently account for 14% of the total. The company posted a normalised EBITDA profit of DKK33.7m in the year ended in October.
