Norway’s Orkla has said it is hoping to boost its presence in the Baltic states with the acquisition of Latvia-based food manufacturer NP Foods Group.
Orkla has moved to buy NP Foods, which sells products including confectionery, cakes and soft drinks, from Denmark-based group Nordic Food Partners for an undisclosed sum.
NP Foods’ portfolio includes the brands Laima – which has a 30% market share of the Latvian chocolate market – Staburadze cakes and Gutta soft drinks.
Orkla said the acquisition will “nearly double the scale” of its operations in the Baltic and make it “one of the largest consumer goods companies in the region”.
NP Foods has four factories in Latvia and one in Lithuania. It had a consolidated turnover of EUR77.1m (US$101.7m) in 2013, with an EBITDA of EUR7.5m, Orkla noted.
“The acquisition of Laima and other well-established brands is strategically important to Orkla, and will significantly strengthen our foothold in the region,” Orkla president and CEO Peter Ruzicka said.
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The move is intended to boost Orkla’s presence in the Baltic biscuits, cakes, juice, water and ready meal markets.
“We have a strong portfolio of local brands with leading market positions. The newly acquired companies are a good strategic fit for Orkla, and will strengthen our position as the leading consumer goods company in the region,” Christer Åberg, CEO of Orkla’s confectionery and snacks business, said.