Nordic food group Orkla has bought another business-to-business supplier, adding to its ingredients operations with the acquisition of a majority stake in UK firm Orchard Valley Foods.
Orkla has paid an undisclosed sum for 85% of Orchard Valley Foods, which supplies “ingredients and accessories” to bakery, chocolate and ice cream companies in the UK and in continental Europe.
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“The acquisition of Orchard Valley complements Orkla’s current position in the UK ice cream ingredients and accessories segment. It also strengthens our position in categories that are well known to Orkla Food Ingredients. This acquisition offers potential for increased exports and synergies with our present operations,” Pål Eikeland, the CEO of Orkla’s food ingredients business, said today (3 April).
Orchard Valley generated a turnover of GBP23.9m (US$29.9m) for the year to the end of May. Orkla said the majority of Orchard Valley’s turnover was made domestically but added the UK firm does have “increasing exports to Europe”. Orchard Valley filed a “normalised EBITDA” of GBP2m for its last financial year, Orkla said.
The companies agreed not to disclose the amount Orkla paid for its stake.
Earlier this month, Orkla announced a deal to buy Dutch ice cream industry supplier Laan Heiloo.
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By GlobalDataIn September, Orkla agreed to buy a 70% stake in Broer Bakkerijgrondstoffen, a Dutch manufacturer of almond paste, bakery ingredients and ice cream powder.
Last March, Orkla snapped up UK-based ice cream cone and wafer maker The Waverley Bakery Ltd. Waverley primarily sold ice cream cones and wafers to the grocery sector in the UK. The company also offers ice cream cones, ingredients and accessories to ice cream parlours and small-scale ice cream manufacturers.
