Orkla acquires majority share of Danish bread-based convenience products supplier
Easyfood was formed in 2000 and has established itself as a solid supplier to the out-of-home market in Denmark, with a customer base that includes instore bakeries, convenience stores, cafés, petrol stations and food service.
“Easyfood is well positioned in a growing market for convenience products,” said Carsten Hänel, CEO of Orkla Foods Danmark.
Out-of-home
“Orkla holds a strong position in the Danish grocery sector, in a wide range of food categories. Through our acquisition of Easyfood, we are strengthening our position in the out-of-home market and in channels with higher growth than traditional grocery stores.”
Kolding-headquartered Easyfood had a turnover of DKK 316.1m ($48.7m) in the 52 week period to October 30, 2018, and an EBITDA of DKK 33.7m ($5.2m) in the same period.
While the company’s turnover is mainly generated in Denmark, exports account for a growing share, currently around 14%.
Flemming Paasch will remain as CEO and minority shareholder after the acquisition has been finalised.
Leading consumer goods company
“Orkla is the Nordic region’s leading branded consumer goods company and will provide valuable expertise and support in Easyfood’s future growth,” said Paasch.
“Together, the two companies will be well positioned to respond to new consumer habits, and I am looking forward to being part of the journey ahead.”
The parties have agreed on a purchase price that values the company at DKK 330m ($50.9m). The agreement is subject to the approval of the Danish competition authorities.
Norwegian company Orkla is a supplier of branded consumer goods and concept solutions to the consumer, out-of-home and bakery markets in the Nordics, Baltics and selected markets in Central Europe and India. The listed firm posted a turnover of NOK 40bn ($4.7bn) in 2017 and employs over 18,000 people.
