Orkla Foods Danmark has signed an agreement with Kavli Holding AS to purchase O. Kavli A/S. The acquisition further reinforces Orkla Foods Danmark's branded consumer goods portfolio.
The agreement provides for a complete takeover of O. Kavli A/S ("O. Kavli"), a significant supplier to the Danish grocery market with a product portfolio that includes well-known brands like Fun, Grønnegården, Kavli, Scoop and Blomberg's Glögg. Since Orkla already owns the Fun brand in the other Nordic countries, the agreement gives Orkla full ownership of Fun in the Nordic region.
O. Kavli generated sales of DKK 170 million in 2014. The company has 70 employees distributed between an office in Hvidovre and a factory in Ringkøbing. O. Kavli was founded in Bergen, Norway in 1893, and its Danish operation was launched in 1935. O. Kavli is owned by Kavli Holding AS. The parties have agreed not to disclose the purchase price.
"Our acquisition of O. Kavli represents an investment in the beverages category and an extension of our groceries portfolio. The company's products complement our existing product range, which encompasses K-Salat, Beauvais, Den Gamle Fabrik, Glyngøre, Pastella, Bähncke and Risifrutti. Further, O. Kavli has a private label and an export business with long-term customer relations. We look forward to adding beverages to the portfolio," says Atle Vidar Nagel-Johansen, Executive Vice President and CEO Orkla Foods.
"We are pleased to have found a solid buyer for O. Kavli in Denmark, and are confident that Orkla Foods Danmark has the resources to contribute to a profitable growth of the company," says Erik Volden, CEO of Kavli Holding AS.
Implementation of the agreement is conditional on approval from the Danish competition authorities. The transaction is expected to be completed by the end of February 2016.
Orkla is a leading supplier of branded consumer goods and concept solutions to the grocery, out-of-home and bakery markets in the Nordics, the Baltics and selected markets in Central Europe and India. Orkla is listed on the Oslo Stock Exchange and has its head office in Oslo. In 2014, the Group had a turnover of around NOK 30 billion and approximately 13,000 employees at year-end 2014.
Oslo, 8 January 2016
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