31.05.2002: Orkla Foods is acquiring Topway Foods International which is Romania's leading producer of margarine, ketchup and mustard. The company generates annual operating revenues of NOK 140 million with good profitability and has approx. 400 employees.
Topway is situated in Cariova, some 12 miles southwest of Bucharest. Its products are sold under the Wiesana, Fruhstuch, Bunica and Tomi brands.
The company is owned by institutional investors, entrepreneurs and employees. The parties have agreed not to disclose the acquisition price. The key personnel, including the managing director, wish to continue working with the company after Orkla Foods' takeover. Topway is also one of Romania's largest producers of vegetable oils, but this part of the business is not comprised by the transaction. After the takeover, Topway Foods International will change its name to Orkla Foods Romania SA.
Romania has a population of approx. 22 million.
"The acquisition is part and parcel of our ambitions of further growth in Central and Eastern Europe. By taking over this company, we are positioning ourselves comparatively early in a growing Romanian market," says Orkla Foods' Managing Director Håkon Chr. Andersen.
Orkla Foods Romania will become part of Orkla Foods International which has already leading positions within several categories in Austria, Poland, Hungary, Czech Republic and Slovakia. The division's operating revenues totalled NOK 496 million in 2001.
The acquisition is subject to approval by Romanian competition authorities.