Orkla acquires Royal Brinkers in Romania

12.12.2005: Orkla Foods Romania acquires 100% of the shares in the Royal Brinkers group in Romania from RBH International and the Dutch Brinkers family.

Royal Brinkers is the second largest retail margarine producer in Romania, with about EUR 15 million in net revenue in 2004 and nearly 200 employees.
 
Royal Brinkers entered the Romanian market in 1993, and is currently holding the number two position in the retail margarine segment with the Linco, Holland and Unirea brands.
 
"The new investment is in line with Orkla's long-term strategy for growth in the region," says Managing Director Knut Johannessen of Orkla Foods International. "Margarine is an important product category in our portfolio. Through this acquisition, the Orkla Group has become the owner of yet another company that will significantly contribute to the development of our business in Romania."
 
"Royal Brinkers Romania is a successful business in a sector where Orkla can maximise synergies for the benefit of the consumers," says Orkla Foods Romania CEO Aliz Kosza. "After the takeover, it is our priority to integrate the company and its employees into Orkla Foods Romania, and then establish the right strategy for growing the business further."
 
The Brinkers family has considerable experience in the food industry, particularly in margarine production and frozen pastry, and is operating in over 20 countries.
 
"We believe that the combination of Orkla Foods Romania and Royal Brinkers Romania will optimise the Romanian margarine industry for future development, which will give the best guarantee for jobs in this sector," says the company's chairman, Mr. Bernardus Brinkers.
 
The parties have decided not to disclose the value of the transaction. Closing is pending approval by the Competition Council of Romania.
 
The Orkla Group is one of the largest companies quoted on the Norwegian Stock Exchange, with annual operating revenues of NOK 56 billion (pro forma).
 
The Orkla Group entered Romania in 2002 with the acquisition of Topway Foods International. Orkla Foods Romania owns the Bunatati de la Bunica, TOMI, Wiesana, Frühstück, Ardealul and La Minut brands. Since 2004, 18 new products have been launched, four of which in new categories. Two production plants have been purchased: a fruit and vegetable processing plant in Targoviste and a pâté and ready meals plant in Covasna.