NORWAY – Norwegian conglomerate, Orkla, has announced hiving off its business into 12 individual units, to become a leading industrial investment company with brands and consumer-oriented scope.

Effective 1 March 2023, 12 independent portfolio companies will be established in Orkla: Jotun (42.6% interest), Orkla Foods Europe, Orkla Food Ingredients, Orkla Confectionery & Snacks, Orkla Health, Orkla Home and Personal Care, Orkla India, Pizza Out of Home, Orkla House Care, Health and Sports Nutrition Group, Pierre Robert Group and Lilleborg.

In addition, a Board of Directors will be established in each portfolio company where such a board does not already exist and will include external Board members where appropriate.

The Orkla group will maintain its ownership of the Hydro Power energy business and the real estate investments in Orkla Real Estate.

Orkla Board Chairman Stein Erik Hagen stated: “We want to establish a corporate structure and culture that creates greater value and entails greater autonomy and responsibility for the individual companies.

“Since Nils K. Selte took up the post of President and CEO on 11 April this year, he has worked systematically on setting up the new structure, and I am glad that we can now establish a new business and operating model.”

 President and CEO Nils K. Selte commented that Orkla is to be converted into a leading industrial investment company with brands and consumer-oriented scope.

He added that the company will adopt a long-term, industrial approach to the portfolio companies as active owners and will work through the company boards.

It will continue to build on the deep consumer insight and experience that has acquired in developing leading brands while also pursuing an active portfolio management policy, targeting rapidly growing consumer segments and markets.

In the time to come, Orkla will adopt a more dynamic approach to our portfolio, which will entail assessing acquisitions, joint ventures, stock market listings, and divestments of companies, Selte noted.

Mr. Selte will be joined in Orkla’s Group Executive Board by five EVPs who will together form a single investment team: Maria Syse-Nybraaten, Audun Stensvold, Øyvind Torpp, Atle Vidar Nagel Johansen and Hege Holter Brekke.

Orkla’s Group Executive Board will also comprise four EVPs with responsibility for key corporate functions: Harald Ullevoldsæter (Finance & CFO), Christer Grønberg (HR), Camilla T. Robstad (Legal & Compliance) and Håkon Mageli (Communications & Corporate Affairs).

The new Group Executive Board will be operational from 13 December 2022. As a result of these changes, Sverre Prytz will step down from Orkla’s management team, however, he will continue to work with strategy and projects, while reporting to the President and CEO.

Orkla struck yet another deal in the pizza-chain area last month with a majority interest in Poland’s Da Grasso, conducting the deal through its Orkla Consumer and Financial Investments business unit.

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