Orkla Food Ingredients has agreed to acquire an 80% stake in Danish sales and distribution company SR Food, enhancing its business in Denmark.
The deal, completed through Orkla’s wholly owned subsidiary Dragsbæk, will bolster the Norwegian food company’s position as a supplier of organic and vegetarian foods.
SR Food has a broad product range including fresh doughs, tapas and sliced meats for the Nordic market. But the share of organic and vegetarian products in its portfolio is increasing, Orkla said, meaning that it represents a good strategic fit for the company.
SR Food will join the Naturli’ brand and newly launched Funky Fields as part of Orkla’s burgeoning organic and vegetarian food offering.
Last week, Orkla launched a host of new product innovations in the Nordics, including various meat-free and organic snacks.
Orkla Food Ingredients CEO and executive vice-president Pål Eikeland said: “With the acquisition of SR Food, Orkla is developing its platform for growth in organic and vegetarian foods, and in addition strengthening its position in fresh doughs. SR Food and Orkla Food Ingredients share many customers, so it will be possible to broaden distribution and expand product range. The acquisition also creates a potential for synergies between the businesses.”
SR Food generated pre-tax earnings of DKK 11.3 million ($1.68 million) in 2016, compared to Orkla’s pre-tax profits for the year of NOK 5.18 billion ($607.94 million).
The company is based in Randers, in northern Denmark, and has six employees. Jan Hørby will continue to lead the business as CEO once the deal is completed.
Both parties have agreed not to publicly disclose the sale price.
© FoodBev Media Ltd 2017