Nordic food group Orkla has signed an agreement to dispose of its potato flatbread brand Vestlandslefsa to Norwegian bakery firm Baxt Lierne, a subsidiary of seafood supplier Skagerrak Holding.
Oslo-listed Orkla said the disposal will enable the business to “streamline” its portfolio and focus on pizza production at its site in Stranda, a municipality in the Møre og Romsdal region of Norway.
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The two parties have agreed not to disclose the price of the transaction, which includes the Vestlandslefsa brand, production assets and recipes, according to a statement from Orkla. The deal will become effective from 6 July.
Paul Jordahl, the chief executive of the Orkla Foods Norway unit, said: “The sale is part of Orkla’s strategy to concentrate resources on our priority growth areas. Vestlandslefsa has a long history and is a favourite of many Norwegian consumers. We are glad that the business will be continued in the Baxt group.”
Orkla said it acquired Vestlandslefsa through its 2013 deal for Rieber & Son.
While Orkla has been busy on the M&A front of late, the company has also been trimming parts of its portfolio. In February, it sold the Indian sauces and ready-meals brand SaritaS, which it also acquired through Rieber & Son. And last year it divested the Glyngøre fish brand.
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By GlobalDataIn 2019, Orkla group CEO Jaan Ivar Semlitsch created a new role for an executive vice president for M&A and strategy, which was filled by former DuPont executive Sverre Prytz, as he eyes investment opportunities.
