Orkla Food Ingredients subsidiary NIC Enterprises has agreed a deal to acquire UK-based fudge and toffee manufacturer Confection by Design.
Headquartered in Harrogate, Confection by Design produces fudge and toffee for ice cream manufacturers, bakeries and confectioners, and approximately two-thirds of its product portfolio is distributed by Orkla’s UK subsidiary Orchard Valley Foods.
80% of Confection by Design’s sales are in the UK, and Orkla Food Ingredients claims that the acquisition will boost its presence in the market, in which it already holds a strong position through its NIC UK, Orchard Valley Foods and County Confectionery subsidiaries.
Confection by Design recorded an annual turnover of £5.7 million in the financial year ended 30 June 2019, and the company’s operations will be consolidated into Orkla’s financial statements from 1 July 2019.
Orkla and Confection by Design have agreed to not disclose the purchase fee.
Tor Osmundsen, CEO of NIC Group said: “The purchase of Confection by Design is strategically right and will complement Orkla Food Ingredients’ position as a supplier of inclusions and accessories to the bakery, chocolate and ice cream market.”
Orkla has made a number of acquisitions over the course of 2019 as part of a concerted strategy to strengthen its position in Europe across a wide range of sectors in the food industry.
This strategy saw Orkla Foods Ingredients announce the acquisition of Zeelandia Sweden in April, a supplier of margarine, vegetable oils and bakery ingredients.
Over the course of 2019, Orkla has also acquired a majority stake in Greek confectionery, bakery and ice cream ingredients producer Stelios Kanakis Industrial; purchased Swedish chilled and frozen food producer Lecora; acquired a minority stake in the owner of Portugal-based Captain Kombucha and purchased a 90% stake in Danish bakery product manufacturer Easyfood.
The company has also restructured its executive management team following the resignation of CEO Peter Ruzicka, who stepped down from his position in May after delivering a fifth consecutive year of top-line growth at the company.
Last month, Orkla appointed Jaan Ivar Semlitsch as its new CEO, who joins the Norway-headquartered firm from Dixons Carphone, where he has been CEO of Elkjop Nordic for more than six years.
© FoodBev Media Ltd 2021
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