Orkla Foods is acquiring a strategic 15 per cent shareholding in Chumak, which is one of Ukraine's leading brands. Chumak is a manufacturer of ketchup, mayonnaise, canned vegetables, sauces and sunflower oil.
Chumak is based in Kahovka in the southern Ukraine and operates three factories in the country. The products are sold under two brands: Chumak and Darina.
Chumak generated operating revenues of USD 32 million in 2001. The company has approx. 1,000 employees.
Chumak is a company affiliated with the Swedish entrepreneur Professor Hans Rausing, who developed Tetra Pak into a global packaging enterprise. The parties have agreed not to disclose the acquisition price.
Håkon Chr. Andersen, Managing Director of Orkla Foods, says: "This investment is a part of Orkla Foods' strategic long-term commitment to expanding in Central and Eastern Europe. Ukraine, a prime market in the region with 50 million inhabitants, has a substantial business potential for Orkla Foods."
Mr. Håkon Chr. Andersen and Mr. Philip Wegh, the Director responsible for Orkla Foods' operations in Russia and Ukraine, will serve as members of the Chumak board.
Mr. Tuve Johannesson, who represents Professor Rausing's interests, says: "We welcome the competence and knowledge that Orkla will bring to Chumak and we look forward to developing a further co-operation with Orkla Foods. Our company has achieved a great deal over the last 6 years, and we look forward with confidence to a future that will be strengthened by Orkla Foods' investment in our company."
Orkla Foods, a subsidiary of Orkla ASA which is listed on the Oslo Stock Exchange, is a leading developer, producer and marketer of branded consumer goods. The company is operating in 13 countries. Operating revenues in 2001 were NOK 10,205 million. The company has 7,400 employees.
Chumak is a leading brand in Ukraine. The company is well known for producing high quality food products. The two Swedish founders, Mr. Johan Bodén and Mr. Carl Sturén, established the company in 1996 supported by and in partnership with Professor Hans Rausing.
For further information, please contact:
Mr. Håkon Chr. Andersen, Managing Director of Orkla Foods, tel: + 47 66 81 61 00
Mr. Håkon Mageli, Director of Orkla Foods, mobile: + 47 928 45 828
Mr. Johan Bodén, Managing Director of Chumak, tel: + 380 55 232 6001
Kolbotn/Kahovka, August 19, 2002