FDBusiness.com

The Norwegian Competition Authority has approved Orkla’s NOK6.1 billion (Eur800 million) purchase of Rieber & Son. The deal gives Orkla ownership of such well-known brands as Toro, Vitana, K-Salat, Delecta, Frodinge, Chaka and Bähncke.

“With this acquisition we are strengthening our position as the leading Nordic branded consumer goods company for food and beverages. Rieber & Søn has strong brands that are an optimal match for Orkla’s product portfolio in terms of categories, production technology and geography,” says Orkla president and chief executive Age Korsvold (pictured). 

Rieber & Son has a number of well-known brands and businesses. Toro is Norway’s leading supplier of sauces, soups and ready meals, among other things. Other popular Norwegian brands are Denja, Mr Lee, Vossafar and Vestlandslefsa. Vitana is one of the Czech Republic’s largest and longest-established food manufacturers. K-Salat is well-positioned in both Sweden and Denmark in the mayonnaise, remoulade and salad markets. Delecta is one of Poland’s leading dessert and baking mix brands. Frodinge is market leader for refrigerated and frozen cakes and desserts in Sweden. Chaka is a well-known Russian brand of nuts. Bähncke holds the leading position in the Danish mustard market. In addition, Rieber & Søn is a supplier to the out-of-home sector in Norway, Sweden, Denmark, the Czech Republic and Slovakia.

Rieber & Son had total sales of NOK 4.16 billion in 2012, of which 70% were generated in the Nordic region. The group has around 2,600 employees, of whom 1,600 work outside Norway.

When the transaction has been completed, the integration of Rieber & Son into Orkla will begin. The plan is to merge Rieber & Son Norge with Stabburet, and Rieber & Son Danmark with Beauvais Foods, and to integrate Frodinge in Sweden into the merged Abba Seafood and Procordia.

“We intend to create a driving force in the Nordic food industry, with the competence and resources to develop strong local products and brands in competition with international companies. We aim to have a prominent presence in the various markets, and to offer food products that are adapted to local consumer preferences,” says Age Korsvold.

In the markets outside the Nordic region – the Czech Republic, Poland, Russia and Slovakia – the companies in Rieber & Son will continue to operate as independent entities.

In addition to its Nordic activities, Orkla holds several strong positions in India, Russia and Austria. Moreover, Orkla Food Ingredients is a major supplier to the European bakery market.

As well as its branded consumer goods business, Orkla operates in the real estate, hydropower and aluminium sectors and has financial investments. Orkla employs around 28,000 people, of whom some 14,000 are employed in its branded consumer goods business, and had total turnover of around NOK30 billion (Eur3.9 billion) in 2012.