Orkla strengthens its production capacity in the breakfast category

Through its wholly-owned subsidiary Orkla Foods Sverige, Orkla has signed and closed an agreement to purchase the Danish bakery Struer Brød A/S ("Struer"). Struer produces breakfast cereals and breadcrumbs, and Orkla is its most important customer.

Through the Paulúns, Bare Bra and Det Gode Liv brands, Orkla offers a broad selection of healthier breakfast products. The products are being launched in a growing number of markets, and the category is seeing good growth. Struer has supplied breakfast cereals to Orkla since 2012, as well as selling products to the out-of-home sector and the food industry under their own brand Struer.

"Struer delivers high-quality products and has strong product development expertise. We are pleased with our collaboration with Struer, and this acquisition is strategically important to ensure sufficient production capacity and product development for the future," says Atle Vidar Nagel Johansen, Orkla EVP and CEO of Orkla Foods.

Struer was established in 1929 and has 44 employees. The current owners are the three companies Lantmännen Cerelia A/S, Givesco A/S and JN-Holding af 1. oktober 1989 ApS. In 2016, Struer had a turnover of DKK 114 million (ca. NOK 148 million), about half of which consisted of sales to Orkla, and EBIT of DKK 9,8 million (ca. NOK 13 million). The company will be consolidated into Orkla's financial statements as of 1 February 2018.

The parties have agreed not to disclose the purchase price.

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 2016, the Group had a turnover of approximately NOK 38 billion, and around 18,000 employees.

Orkla ASA
Oslo, 1 February 2018

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