Orkla adds Swedish bakery ingredient supplier to its burgeoning portfolio

15-Apr-2019 - Last updated on 15-Apr-2019 at 11:13 GMT

Zeelandia portfolio makes 'a good fit' with Orkla's Credit Group, which developed bakery products. Pic: Credin Group

Related tags Orkla group M&A Zeelandia Kanakis Easyfood Credin Group

Orkla Foods Danmark A/S is continuing is momentous acquisition surge with the procurement of bakery ingredients supplier Zeelandia Sweden AB from Dutch firm Koninklijke Zeelandia Groep B.V.

Terms of the deal were undisclosed, but it is Orkla’s third acquisition this year.

Stenkullen-based Zeelandia posted sales of approximately €22.9m ($25.8m) in fiscal 2018, mainly supplying the Swedish market with margarine, vegetable oils and bakery ingredients, but also exporting to Finland, the Baltics and Norway.

It is currently owned by Koninklijke Zeelandia Groep – headed by CEO Karin Anderson – but was established in 1900 by the Doeleman family.

Once the transaction is finalized, Zeelandia will be renamed Credin Sverige AB and will become part of Orkla’s Credin Group.

Strengthening foothold in Nordic markets

“The acquisition of Zeelandia Sweden AB is strategically right for strengthening Orkla’s position and production capabilities in our Nordic home markets in categories with which Orkla Food Ingredients is very familiar,” said Johan Clarin, Orkla executive VP and CEO of Orkla Food Ingredients.

“Their product portfolio makes a good fit with the Credin Group,” which develops bakery products such as bread and cake mixes, custard powders, ready-to-use custards, glazes and fillings.

The agreement is subject to the approval of the Swedish competition authorities.

Acquisition spree

The move follows Orkla’s announcement in late March on the acquisition of a majority stake in Stelios Kanakis Industrial and Commercial S.A.

Kanakis supplies bakery, confectionery and ice cream ingredients in Greece.

In January, Orkla secured a deal to buy a 90% stake in Easyfood A/S, a Danish producer of bread-based convenience products for the away-from-home category, for approximately DKK 330m ($50.3m)

Founded in 2000, Easyfood had a turnover of DKK 316.1m ($48.7m) in the 12 months to the end of October 2018, and employs 144 people.

The company also announced in March it will take a 43.5% stake in Asteriscos e Reticências, which produces the Captain Kombucha brand, sold ‘all over Europe.’