NORWAY- Orkla Food Ingredients (OFI) has entered into an agreement to purchase 84% of the shares in Denali Ingredients, a leading ice cream ingredients company in the USA.
The purchase price on a 100% and cash and debt-free basis is US$200 million, equivalent to NOK 2.2 billion.
Over the past 15 years, Denali Ingredients has had remarkable organic growth of more than 10% p.a.
The business has 160 employees overall and its headquarters are in Wisconsin, where it operates two production plants.
“The acquisition of Denali Ingredients is a significant and natural step for OFI into the market for ingredient solutions for the US ice cream industry,” says Nils K. Selte, President and CEO of Orkla.
He highlighted that the food ingredients sector is fragmented with significant potential for further consolidation and growth.
Based on these opportunities, Denali will now initiate a process to seek a long-term partner for OFI to accelerate growth and value creation.
Along with OFI’s dominant position in the European market for ice cream and confectionery ingredients, Denali Ingredients develops and produces ingredient solutions for the US ice cream industry.
“With this acquisition, OFI is strengthening its position as a leading ingredients supplier to the bakery, ice-cream and confectionery industries. We have a stated strategy of increasing our exposure to markets and categories with higher growth and margins,” says Johan Clarin, Orkla EVP and CEO of OFI.
The new business will be part of OFI’s Sweet Ingredients vertical which will increase the size of its Sweet Ingredients area by 45%.
Orkla acquires leading Polish pizza chain
OFI, has recently acquired 74% of the shares in Da Grasso, one of the leading pizza franchise chains in Poland with 193 outlets nationwide.
With the investment in Da Grasso, Orkla’s network will consist of 860 franchise pizza outlets in Finland, Benelux, Germany, and Poland.
The portfolio will consist of the leading brands Kotipizza, New York Pizza and Da Grasso.
Da Grasso is owned by Karolina Rozwandowicz (95%) and the CEO Magdalena Piróg (5%). Both will continue as shareholders in partnership with Orkla.
“Through closer collaboration with our existing pizza platforms, we are confident that we will build stronger businesses on our way to becoming one of the leading pizza franchise companies in Europe,” says Thomas Ljungqvist, Executive Vice President and acting CEO of Orkla Consumer & Financial Investments.
The parties agreed not to disclose the purchase price. The transaction is expected to be completed during Q4.
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