SWEDEN – Orkla Food Ingredients has announced that it has entered into an agreement to acquire Zeelandia Sweden AB, a manufacturer and supplier of margarine and other edible fats in Sweden.

Zeelandia distributes food products including shortening, table oils, margarine, vegetable oils, bakery ingredients and other edible fats and oils in Sweden and exports to Finland, the Baltics and Norway.

Its main customers are the bakery industries with headquarters in Stenkullen, near Gothenburg.

Owned by the Dutch company Koninklijke Zeelandia Groep B.V., Zeelandia Sweden has its production facilities located in Stenkullen, near Gothenburg, Sweden, employing 60 employees.

“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.”

In the year 2018, Zeelandia had US425.79 million (NOK 222.5 million) in turnover.

In the second quarter of 2019, the company will be consolidated into Orkla’s financial statements as part of the acquisition deal.

The transaction whose sum has not been disclosed is subject to the approval of the Swedish competition authorities.

Orkla in January acquired 90% stake in Danish Easyfood for US$50 million, expanding its portfolio in bread-based convenience products for the out-of-home channel.

The company has also announced a series of investments and acquisitions including the Danish breakfast cereal and well-known porridge brand, Pama; and two acquisitions in Portugal and Sweden (Asteriscos e Reticências and Lecora respectively).

Recently, the firm through its fully owned subsidiary Orkla Food Ingredients unveiled intentions to purchase a majority stake in Stelios Kanakis, a leading supplier of confectionery, bakery and ice cream ingredients in Greece.

It acquired a 65.8% stake in the ingredients firm from Stelios and Maria Kanakis at a purchase price per share of EUR 4.35 (US$4.89).