Norway-based food company Orkla said it has closed an agreement to buy Denmark’s Struer Brod, a producer of breakfast cereals and breadcrumbs.
Both parties agreed not to disclose the price of the deal, according to a statement today (1 February), which said the transaction will be conducted through Orkla’s wholly-owned subsidiary Orkla Foods Sverige.
The baker is being bought from current owners Lantmännen Cerelia, Givesco and JN-Holding af 1. oktober 1989.
Struer was established in 1929 and generated a turnover of DKK114m (US$19m) in 2016, about half of which consisted of sales to Orkla. The cereal maker will be consolidated into Orkla’s financial statements from today.
Atle Vidar Nagel Johansen, Orkla’s executive vice president and the CEO of Orkla Foods, said: “Struer delivers high-quality products and has strong product development expertise. We are pleased with our collaboration with Struer, and this acquisition is strategically important to ensure sufficient production capacity and product development for the future.”
Listed on the Oslo Stock Exchange, Orkla supplies branded consumer goods to markets in the Nordics, the Baltic countries and select markets in Europe, as well as India. The company posted a turnover of NOK38bn (US$4.9bn) in 2016 and employs around 18,000 people. Struer has around 44 employees.