Orkla has entered into an agreement to purchase the Swedish company Health and Sports Nutrition Group HSNG AB (“HSNG”).
HSNG runs the eCommerce portals Gymgrossisten and Bodystore, and is the biggest online health and sport nutrition company in the Nordic region.
Through the Gymgrossisten and Bodystore eCommerce portals, HSNG offers dietary supplements, health and well-being products, activewear, equipment and accessories to a broad customer base in the Nordic region. Its sales portfolio includes proprietary brands and products distributed on behalf of third parties. The websites purchased receive 24 million visits per year.
“Orkla’s goal is to strengthen its focus on digital marketing and sales, and through this acquisition will gain proximity to a large number of engaged consumers. Health is a priority area for us, and we see good opportunities for collaboration with our existing activities, in the form of greater distribution through traditional sales channels and, not least, enhanced consumer insight,” says Stig Ebert Nilssen, Orkla EVP and CEO of Orkla Care.
Gymgrossisten primarily targets athletes and active sports enthusiasts. Bodystore is a full-range store for health-conscious consumers, and caters to all customer groups with an interest in health and wellness. HSNG has a product development team consisting of experienced nutritionists who provide customer services and product advice directly to consumers.
HSNG’s operations will be maintained as a separate unit in the Orkla Care business area.
HSNG is currently owned by Qliro Group and has around 170 employees. The company is headquartered in Stockholm and has a 12,700 sq.m. logistics centre in Trollhättan. Last rolling 12 months per 1 October HSNG had net sales of SEK 772.8 million (ca. NOK 757 million) and EBITDA of SEK 38.4 million (ca. NOK 38 million). A total of 60% of the company’s turnover is generated in Sweden, and the rest chiefly in Finland, Norway and Denmark.
The transaction is conditional on the approval of the competition authorities in Sweden, Norway and Austria. The parties have agreed on a purchase price of SEK 360 million on a debt-free basis.
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.
The two largest business units are Orkla Home & Personal Care, which holds leading positions in the personal care and cleaning segments, and Orkla Health, which holds leading positions in the dietary supplements, sport nutrition and weight control segments. Orkla Care also has leading positions in the painting tool (Orkla House Care), wound care (Orkla Wound Care), basic garments sold through the grocery channel (Pierre Robert Group) and professional cleaning segments (Lilleborg).