Through its wholly-owned subsidiary Sonneveld Group B.V. ("Sonneveld"), Orkla Food Ingredients (OFI) has signed and closed an agreement to acquire 70% of the shares in Broer Bakkerijgrondstoffen B.V. ("Broer"), a leading manufacturer of almond paste, bakery ingredients and ice cream powder in the Netherlands.
Sonneveld's core business include bread improvers and mixes. Through its acquisition of Broer, Sonneveld has expanded its product portfolio in the Netherlands in categories that OFI knows well. In 2015, OFI expanded its operations for ice cream ingredients and accessories to the Netherlands through its acquisition of the Dutch sales and distribution companies Frusco and Briceland. The acquisition of Broer, which has its own production of ready mixes for soft-serve ice cream, further strengthens OFI's position in the Netherlands ice cream market.
Broer manufactures primarily for the Dutch B2B market, but also exports products to other countries, chiefly Belgium. With sales and distribution companies in 22 countries, OFI will be able to contribute to the further development of the company's sales, marketing and product development activities.
"This acquisition is in line with Orkla's desire to grow in selected categories and markets where we see potential for further growth and synergies. Broer holds solid positions in categories that are already part of OFI's core business, and the acquisition is strategically important for strengthening OFI's presence in selected geographies in Europe," says Pål Eikeland, Orkla EVP and CEO of OFI.
Broer has a total of 32 employees, and is located in Waddinxveen, Netherlands. The company achieved a turnover of EUR 17 million (approx. NOK 158 million) in 2015 and EBIT (adj.) of EUR 0.7 million (approx. NOK 6.5 million). The parties have agreed on a purchase price of EUR 6 million (approx. NOK 56 million) on a debt-free basis (100%). The company's former owners are the same who owned the sales and distribution company Briceland, which Orkla acquired in December 2015. Two of the owners will remain minority shareholders with a total of 30% of the company's shares.
Orkla is a leading supplier of branded consumer goods and concept solutions to the grocery, 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 head office is in Oslo. In 2015, the Group had a turnover of approximately NOK 32 billion, and 14,670 employees at year end.
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 margarine and butter blends, yeast, bread and cake improvers and mixes, marzipan and ice cream ingredients. Orkla Food Ingredients has sales and distribution companies in 22 countries, ensuring proximity to bakeries and other industrial customers.
Oslo, 2 September 2016
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