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Orkla to take a bite out of Nói
Posted on Thursday, 22 August 2019 12:08
Orkla is buying a 20.0 per cent stake in chocolate and confectionary manufacturer Nói Siríus for an undisclosed sum.
While no financial details have been announced, the deal remains subject to approval from the Icelandic competition authorities.
Under the terms of the transaction, the buyer will have the option to acquire the remaining shares after 2020.
Nói first opened its doors in 1920 and is billed as the leading manufacturer of its kind in Iceland, accounting for 30.0 per cent of the country’s confectionary market and making up 60.0 per cent of total domestic production.
Headquartered in Reykjavik, the group makes chocolate and boiled sweets, as well as other snacks such as crisps and liquorice.
Its brands include Síríus, Nóa Konfekt, Nóa Páskaegg and Konsum.
Nói has 150 employees and posted turnover of ISK 3.44 billion (EUR 24.80 million) in 2018.
Jeanette Hauan, executive vice president of the buyer, said: “Nói holds a unique position in Iceland and is a good fit with Orkla’s portfolio of leading brands.
“We see a potential for creating value by utilising the companies’ strengths across markets, improving production efficiency and building on our position in Iceland, which is a growth market.”
Upon closing, the target’s managing director, Finnur Geirsson, will continue to run the business.
The deal represents another inroad into the Icelandic market for the acquiror, given it already owns a stake in Dragsbaek, a food manufacturer which is part of its Orkla Food ingredients division.
Furthermore, Orkla has a presence in the target country through its brands Toro, Grandiosa, OLW and Jordan.
Based in Oslo, the purchaser claims to be the leading supplier of branded goods across the bakery, grocery and pharmacy sectors.
The group has 18,510 employees and posted revenue of NOK 20.72 billion (EUR 2.08 billion) for the six months ended 30th June 2019, up 4.8 per cent from NOK 19.73 billion in the corresponding period of 2018.
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