Orkla, the Nordic food manufacturer, has continued its acquisition activity with a move for Lecora, a business based in Sweden making schnitzel and vegetarian foods.
The company has also announced the purchase of a minority stake in Portuguese company Asteriscos e Reticências, which produces fermented tea-based health drinks sold in Europe under the Captain Kombucha brand.
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The deal for Lecora sees Orkla take on a company selling into the retail and foodservice channels. Orkla said the out-of-home sector is Lecora’s largest channel.
“Orkla holds a leading position in the Swedish grocery trade, in numerous food categories. With the purchase of Lecora we are strengthening our out-of-home business and expanding our portfolio of organic, vegan and vegetarian food products,” Henrik Julin, the CEO of Orkla’s food business in Sweden, said.
Lecora, set up in 1963, is a family-owned company with 35 employees based in Vadstena, a Swedish town 160 miles south of Stockholm.
The company had a turnover of SEK95.9m (US$10.3m) and EBIT of SEK5.9m in 2018, Orkla said. Turnover is “primarily generated in Sweden” but Lecora exports to the EU.
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By GlobalDataOrkla and Lecora “agreed not to disclose the purchase price”, the Norwegian firm said.
The investment in Asteriscos e Reticências was another piece of M&A news issued by Orkla today (29 March). The business is owned by the two founders, who have an 85% stake, and the German venture capital firm Doehler Ventures, which holds 15%. Doehler Ventures is financed and supported by ingredients manufacturer Doehler. After the completion of the transaction, the founders will retain an interest of 48.5% and Doehler will reduce its stake to 7.9%.
Orkla did not disclose how much it paid for its stake in Asteriscos e Reticências. Johan Wilhelmsson, the CEO of Orkla’s international food business, will become the chairman of the Portuguese firm.
“In investing in the Captain Kombucha brand we are putting our money on a new and increasingly popular product. The probiotics and organic acids it contains have a positive effect on gut health, which is one of Orkla’s priority areas,” Wilhelmsson said.
