Orkla sells Orkla Brands Russia
Orkla has entered into an agreement to sell OJSC Orkla Brands Russia to Slavyanka-Lyuks JSC, a member of the Russian confectionery group Slavyanka.
Under the agreement, Orkla will divest 100 per cent of its shares in Orkla Brands Russia.
Orkla Brands Russia is an established confectionery producer in Russia, with iconic local brands such as Krupskaya, SladCo and Pekar. The company was established in February 2011 through the merger of SladCo and Krupskaya, which have been part of Orkla since 2005 and 2006, respectively. Orkla Brands Russia has production plants in Peterhof outside St. Petersburg, Yekaterinburg and Ulyanovsk. In 2013, the company’s net sales totalled RUB 6,114 million (NOK 1,129 million). As of year-end 2013, the company had 2,225 employees.
Orkla communicated in Q1 2014 that a structural sales process had been initiated.
“Orkla has executed a comprehensive restructuring in Orkla Brands Russia over the last couple of years. The company is now well positioned for the future, but we believe that other owners are better positioned to further develop and support the company’s operations,” says Peter A. Ruzicka, President and CEO of Orkla ASA.
The agreement is subject to approval by the Russian competition authorities.
Orkla’s Russian branded nuts company, Chaka, and separate real estate assets in St. Petersburg and Yekaterinburg are not part of this transaction. Separate sales processes have been commenced for the real estate assets.
Renaissance Capital has acted as exclusive financial advisor to Orkla in this transaction.
About Orkla ASA:
Orkla ASA is a leading supplier of branded consumer goods and concept solutions to the grocery and out-of-home sectors in the Nordic region, the Baltics and selected markets in central Europe, Russia and India. Orkla ASA is listed on the Oslo Stock Exchange (OSE: ORK) and headquartered in Oslo, Norway. The Group's turnover in 2013 totalled NOK 33 billion. As of 31 December 2013, Orkla had approximately 17,000 employees.
Please visit www.orkla.com for more information.
Slavyanka is one of the leading confectionery producers in Russia. The company has production facilities in the Belgorod region and has more than 5,000 employees. Slavyanka is privately owned and its turnover in 2013 totalled approximately RUB 13 billion (approx. NOK 1.83 billion).
Oslo, 28 November 2014
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