Scandinavian food group Orkla is investing in Danish pizza restaurant chain Gorm’s.
Orkla has agreed to take a controlling 67% stake in the business for an undisclosed sum.
The deal follows the announcement last month that Orkla had agreed to buy Denmark’s Struer Brod, a producer of breakfast cereals and breadcrumbs.
Oslo-based Orkla already provides pizzas to the Norwegian, Swedish and Finnish grocery sectors.
It said its investment in Gorm’s will give it a prominent position in a new sales channel with good growth. It describes Gorm’s as a strong branded product with robust growth plans in the restaurant, take-away and catering segments in Denmark.
The business comprises nine self-owned restaurants in Copenhagen, Odense and Aarhus, as well as three franchise-operated restaurants. The company’s current management will remain in place after completion of the agreement. The restaurants will be operated as a separate entity under the Orkla Investments business area.
Through the agreement, Orkla has the opportunity to increase its 67% stake to 100% ownership after an agreed period of time.
Copenhagen-based Gorm’s had a turnover of DKK48m (US$7.9m) for the financial year ending June 2017 and EBITDA of DKK3m. Gorm’s has around 170 employees.
Orkla is a supplier of branded consumer goods to the grocery, out-of-home and bakery markets in the Nordics, Baltics and selected markets in Central Europe and India.