Danish Agro Group has bought Swedish spices business Kryddhuset i Ljung from Humble Group.
In a statement yesterday (24 September), the company's Dava Foods subsidiary said the acquisition was a “strategic step” and is expected to generate “significant synergies” across purchasing, production and product development.
The business said the acquisition would also add "a complementary customer base".
Dava Foods expects the transaction will lift volumes in its ingredients business by more than 50%.
Kryddhuset operates its own production and packaging site in Ljung, making spices, spice blends, flavour solutions and ingredient products for the food industry, including retailers.
The business supplies customers in the grocery and foodservice sectors, with the bulk of sales in Sweden and around 10% exported to Norway.
The financial details of the deal were not disclosed.
Dava Foods CEO Ivan Noes said: “The acquisition of Kryddhuset is another important step in our strategy to expand Dava Foods’ position as a leading supplier of food ingredients in the Nordic region.”
Kryddhuset’s existing management team and employees will remain with the business following the deal.
Noes added: “We look forward to welcoming the employees of Kryddhuset to the group and to further develop the business in close cooperation with our other activities.”
Kryddhuset CEO Pablo Labardi said: “Becoming part of Dava Foods feels like a natural and safe next step for Kryddhuset.
“We gain access to a larger Nordic network and new development opportunities, while continuing to build on what we are good at together with our customers and employees.”
Humble CEO Anders Fredriksson said the sale forms part of an effort to “streamline operations” around the company’s core activities.
He added: “Production of spices is outside this focus and we are pleased to have found a new owner in Dava Foods who can take the business and employees forward in a good way.”
Fredriksson assumed the top role at Humble this month. His appointment was announced in March when he indicated Humble would “simplify structures” and strengthen its "operational performance” to “fully realise the potential of the group’s scale and entrepreneurial strength”.
