Orkla Food Ingredients, through its partially owned subsidiary Dragsbæk A/S, has signed and carried out an agreement to purchase 80% of the shares of SR Food A/S (“SR Food”), the Danish sales and distribution company.
With its purchase of SR Food, Orkla Food Ingredients seeks to further develop its position as a supplier of organic and vegetarian foods.
SR Food has a broad product range which includes fresh doughs, tapas and sliced meats for the Nordic market. The share of organic and vegetarian products in its portfolio is on the rise. SR Food and Orkla Food Ingredients complement each other well. With its Naturli’ brand and the newly launched Funky Fields, Orkla Food Ingredients has staked out a clear position in the organic and vegetarian food market.
“With the acquisition of SR Food, Orkla is developing its platform for growth in organic and vegetarian foods, and in addition strengthening its position in fresh doughs. SR Food and Orkla Food Ingredients share many customers, so it will be possible to broaden distribution and expand product range. The acquisition also creates a potential for synergies between the businesses,” says Pål Eikeland, Executive Vice President and CEO of Orkla Food Ingredients.
SR Food is a privately owned company established in 2003 and has six employees. Shareholder Jan Hørby leads the company, and will continue as CEO after the transaction. The company’s headquarters are located in Randers, Denmark. In 2016, SR Food’s EBIT came to DKK 11.3 million (approximately NOK 14 million).
The company is consolidated on an accounting basis from 1 May 2017. 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 18,000 employees at year end.
About Orkla Food Ingredients
Orkla Food Ingredients is the leading bakery ingredients player in the Nordic region, in addition to holding growing market positions in selected countries in Europe. Its biggest product categories are margarine and butter blends, yeast, bread and cake improvers and mixes, marzipan and ice cream ingredients. Orkla Food Ingredients has sales and distribution companies in 22 countries, ensuring proximity to bakeries and other industrial customers.