Norway’s food giant Orkla buys Latvia’s NP Foods

Detailed information about this deal will be published during a press conference by Orkla Confectionery & Snacks Executive Director Christer Åberg and NP Foods Chairman Rolands Gulbis this Tuesday, 26 August, as reported by Orkla.

Orkla is the leading supplier of food in Nordic countries and Baltic region. This company also has good positions in countries like India, Czech Republic, Austria, Poland and Russia. The company also plays a major role in bread supply in Europe. At the foundation of Orkla’s vision lies the improvement of welfare through the supply of healthy food products made by local producers.

The group also works in aluminium, HES and real-estate property sectors.

In 2013, Orkla Group’s turnover reached NOK 33 billion.

NP Foods’ turnover was EUR 64.32 million in 2013 and EUR 58.77 million in 2012. The company’s profit reached EUR 1.107 million last year and EUR 304,584 in 2012.

The owner of NP Foods is Nordic Partners Food Limited registered on Malta. 51% of shares of the Malta-registered company belong to Nordic Partners in Latvia. The largest shareholder of this company is Daumants Vītols.

With this deal, Orkla will increase its business presence in the Baltic States, becoming one of the largest consumer products companies in the region.

“With more than 140 years of experience and traditions, Laima is one of the strongest confectionery brands in the Baltic States. The procurement of this and other recognizable Latvian brands is important for Orkla because it will help strengthen our position in the Baltics,” says Orkla President and Executive Director Peter Ruzicka.

Laima is a legendary brand of chocolate goods. It owns more than 30% of Latvia’s chocolate market. Local brands like Selga, Staburadze, Gutta, Everest, Fresh Walk and Pedro will improve Orkla’s position in Baltic States, as reported in the company.

Orkla Goup is already represented by Latfood and Spilva in Latvia, Kalev and Põltsamaa Felix in Estonia and Suslavičius-Felix in Lithuania.

“We work with local, strong brands that have leading positions in the market. The acquisition of NP Foods is part of Orkla’s strategy to strengthen our positions,” explains Orkla Confectionery & Snacks Executive Director Christer Åberg.

NP Foods’ consolidated turnover was EUR 77.1 million in 2013. Consolidated profit (before taxes) was EUR 7.5 million in 2013. NP Foods owns four factories in Latvia and one in Lithuania. NP Foods has a total of 1,100 employees.

The deal for the acquisition of NP Foods will be considered complete as soon as a confirmation from competition councils in Latvia, Estonia and Lithuania has been received.