Orkla, through its business unit Orkla Foods, is selling Ringstads Ferskvare to Norsk Kjøttindustri. The sale, which is to have accounting effect from 16 September 1997, will result in a gain of NOK 47 million for the Orkla Group.
In 1996, Ringstads Ferskvare (formerly Stabburet Ferskvare), which has a labour force equivalent to 404 man-years, recorded total operating revenues of NOK 632 million. Its most important product groups are sausages, sliced meats, fresh liver pâté, cured meats and ready-made meals. The company has production facilities at two locations in Norway.
The parties have agreed not to publicise the acquisition price.
The Norwegian market for refrigerated meat products has reflected a low level of brand awareness, a strong focus on price, little variation in the products offered by suppliers and low margins. Orkla Foods and Norsk Kjøttindustri therefore believe there is a need for restructuring in this sector.
The new company will supply a full range of fresh meat products to the Norwegian grocery and catering trade. During a transitional period, the company will be entitled to use the Stabburet trademark for sales of refrigerated meat products to the Norwegian grocery trade.
Information director Lisbeth Lindberg, Orkla, tel. +47 22 54 44 23/22 54 40 00
Information director Håkon Mageli, Orkla Foods, tel. +47 66 81 61 00