Orkla to acquire of Swedish e-commerce company HNSG for US$42m

NORWAY – Orkla, a leading supplier of branded consumer goods and concept solutions to the grocery, has entered into an agreement to acquire the Swedish company Health and Sports Nutrition Group HSNG AB (HSNG).

HSNG runs the e-commerce portals Gymgrossisten and Bodystore, and is the biggest online health and sport nutrition company in the Nordic region.

The transaction, which is conditional on the approval of the competition authorities in Sweden, Norway and Austria, had the parties agreeing on a purchase price of US$42.41million on a debt-free basis.

According to the company, through the Gymgrossisten and Bodystore eCommerce portals, HSNG offers dietary supplements, health and well-being products, active-wear, equipment and accessories to a broad customer base in the Nordic region.

“Orkla’s goal is to strengthen its focus on digital marketing and sales, and through this acquisition will gain proximity to a large number of engaged consumers.

Health is a priority area for us, and we see good opportunities for collaboration with our existing activities, in the form of greater distribution through traditional sales channels and, not least, enhanced consumer insight,” says Stig Ebert Nilssen, Orkla EVP and CEO of Orkla Care.

Gymgrossisten primarily targets athletes and active sports enthusiasts, while Bodystore is a full-range store for health-conscious consumers, and caters to all customer groups with an interest in health and wellness.

HSNG has a product development team consisting of experienced nutritionists who provide customer services and product advice directly to consumers.

HSNG’s operations will be maintained as a separate unit in the Orkla Care business area, as it is currently owned by Qliro Group and with around 170 employees.

The company is headquartered in Stockholm and has a 12,700 square metres logistics centre in Trollhättan.

In the last 12 months, HSNG had net sales of US$91.02 million and EBITDA of US$ 4.52 million.

A total of 60% of the company’s turnover is generated in Sweden, and the rest chiefly in Finland, Norway and Denmark.

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