Orkla Food Ingredients (OFI) has entered into an agreement to buy 84% of the shares in US ice cream ingredients business, Denali Ingredients.
The transaction values Denali at $200 million. The company operates two manufacturing facilities in Wisconsin and employs 160 people.
Denali produces ingredient solutions for the US ice cream industry. The company will be part of OFI’s sweet ingredients business.
Nils Selte, president and CEO of Orkla, said: “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. The food ingredients sector is fragmented with significant potential for further consolidation and growth. Based on these opportunities we will now initiate a process to seek a long-term partner for OFI to accelerate growth and value creation.”
Johan Clarin, Orkla EVP and CEO of OFI, added: “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. Denali Ingredients, with its leading position in the attractive US market, fits well in this picture. With the addition of Denali Ingredients to our group, OFI will increase the size of its sweet ingredients area by 45%.”
The transaction, which is subject to regulatory approval, is expected to be completed by the end of 2022.
© FoodBev Media Ltd 2022
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