The Norwegian listed company Orkla has completed the purchase of more than 75 per cent of the shares in CJSC Krupskaya Confectionery Company, a Russian chocolate company with a market leading position in St. Petersburg and Northwest Russia. The company posted operating revenues of USD 50 million in 2005. Krupskaya has about 1 000 employees.
The purchase of the shares in Krupskaya has now been approved by the Russian competition authorities, and the deal has been closed.
In 2005, Orkla acquired the Russian chocolate company SladCo, which has strong regional positions in several market segments for chocolate and confectionery in Russia. SladCo has production plants in Yekaterinburg (Ural) and Ulyanovsk (Volga).
"Bringing Krupskaya into the Orkla family, strengthens our position in the Russian confectionery market by adding a company who has a leading market share in Northwest Russia. This compliments SladCo positions which are strong in other regions of Russia," explains Håkon Chr. Andersen, head of Orkla Foods CIS.
"The integration plan with Orkla was agreed in advance for a smooth transition. Exchange visits between Krupskaya and Orkla counterparts are in process," says Nina Stepanova, Chief Executive Officer of Krupskaya.
The parties have agreed not to disclose the purchase price.
With 143 million inhabitants, Russia is the largest country in Europe. The Russian grocery market is the fifth largest in Europe.
The Orkla Group is one of the largest companies listed on the Oslo Stock Exchange, posting operating revenues of NOK 55 billion in 2005. The Group consists of the core areas Branded Consumer Goods, Specialty Materials and Financial Investments. Orkla is a leading supplier of branded consumer goods to Nordic food retailers, and also enjoys strong positions in Central and Eastern Europe as well as in Russia. The Group has approximately 35 000 employees.
For further comments, please contact:
Philip Wegh, director Orkla Foods CIS at + 7 495-784-1453 or
Håkon Mageli, director Orkla Foods at + 47 928 45 828