Through its wholly-owned subsidiary NIC Enterprises Limited ("NIC"), Orkla Food Ingredients has signed and completed an agreement to purchase British fudge and toffee manufacturer Confection by Design Ltd. ("Confection by Design").
Confection by Design offers fudge and toffee to ice cream manufacturers, bakeries and confectioners. Approximately two thirds of its portfolio is distributed by Orkla's UK subsidiary Orchard Valley Foods. Most of the company's sales are in the UK (~80%), but Confection by Design also has exports to other countries (~20%).
Orkla Food Ingredients holds a strong position as a supplier of bakery ingredients and ice cream ingredients and accessories in the Nordic region and selected countries in Europe. In the UK, Orkla Food Ingredients has built up a solid position through its subsidiaries NIC UK, Orchard Valley Foods and County Confectionery.
"The purchase of Confection by Design is strategically right and will complement Orkla Food Ingredients' position as a supplier of inclusions and accessories to the bakery, chocolate and ice cream market," says Tor Osmundsen, CEO of NIC Group.
Confection by Design is a privately-owned business established in 1988 and has 35 employees. The company's headquarters and production facilities are located in Harrogate, U.K.
The company has grown its turnover to GBP 5.7 million (approx. NOK 63 million) in the financial year ending 30 June 2019. The company will be consolidated into Orkla's financial statements as of 1July 2019.
The parties have agreed not to disclose the purchase price.
Orkla is a leading supplier of branded consumer goods and concept solutions to the consumer, out-of-home and bakery markets in the Nordics, Baltics and selected markets in Central Europe and India. Orkla is listed on the Oslo Stock Exchange and its headquarters is in Oslo. In 2018, the Group had a turnover of NOK 41 billion, and approximately 18,500 employees as of 31 December 2018.
About Orkla Food Ingredients
Orkla Food Ingredients is the leading bakery ingredients player in the Nordic region, in addition to holding growing market positions in selected countries in Europe. Its biggest product categories are yeast, butter blends, plant-based food products, marzipan and margarine. Orkla Food Ingredients has sales and distribution companies in 21 countries, ensuring proximity to bakeries and other industrial customers.
Oslo, 1 July 2019
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