Norwegian food group Rieber & Søn has sold its Sopps brand and related portfolio of pasta products to grain-based food maker Lantmännen Cerealia.
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The deal, which will generate a gain of NOK50m (US$8.7m), will allow Rieber to focus its efforts on its “core” businesses, the company said.
“Pasta is a product category where the company redistributes trading products, but where there is insufficient scope for Rieber & Søn to exploit either its relative advantages in the field of product development or its position as the taste champion in local markets,” the group said.
Lantmännen Cerealia, which is already the market leader in the Swedish pasta category through its Kungsörnen brand, said that the acquisition would provide it with a “larger portfolio” and “stronger offering” to the retail market in Norway.
“It will give us the largest market share in the pasta category in another Nordic market, which is in line with our strategy to grow our business in this area,” a spokesperson for Lantmännen told just-food.
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By GlobalDataThe purchase includes the brand and current inventory.
The deal is expected to come into effect at the start of 2010, pending approval from the Norwegian Competition Authority.
