DENMARK – Orkla Foods Danmark A/S has announced that it has agreed to acquire 90% of the shares in Easyfood A/S, a Danish producer of bread-based convenience products for the out-of-home channel at a purchase price valued at US$50.2 million (DKK 330 million).
The agreement is subject to the approval of the Danish competition authorities and will see Flemming Paasch, one of the present owners remain in the company as CEO and minority shareholder.
The company whose exports outside Denmark accounts for 14% of turnover is also owned by Hemming Van.
“Easyfood is well positioned in a growing market for convenience products.
Orkla holds a strong position in the Danish grocery sector, in a wide range of food categories.
Through our acquisition of Easyfood, we are strengthening our position in the out-of-home market and in channels with higher growth than traditional grocery stores,” said Carsten Hanel, CEO of Orkla Foods Danmark.
Founded in 2000, Easyfood is a Denmark based producer and marketer of bakery products for convenience stores and has a growing customer base that includes in-store bakeries, convenience stores, cafés, petrol stations and food service.
The company offers thaw-and-serve, bake off, and par-baked products with a product line consisting of coffee cakes and rolls, convenience products, organic products, pizzas, sandwich breads and rolls, bars and snacks, and Délifrance products.
“Orkla is the Nordic region’s leading branded consumer goods company and will provide valuable expertise and support in Easyfood’s future growth.
Together, the two companies will be well positioned to respond to new consumer habits, and I am looking forward to being part of the journey ahead,” said Flemming Paasch, CEO of Easyfood.
Easyfood has 144 employees and had a turnover of US$48.11 million in the last 12 months as at 30 October 2018, and normalised EBITDA of US$5.12 million in the same period.
Last year, Orkla entered a strategic agreement to acquire Danish bakery and breakfast cereal manufacturer Struer Brød, which was also a supplier of breakfast cereals to Orkla.
Other acquisitions made by Orkla included UK-based chocolatier County Confectionery and a controlling stake in Gorm’s, the Danish pizza chain.
In 2017, Orkla Food Ingredients expanded its presence in Denmark with the acquisition of an 80% stake in sales and distribution company SR Food.