Orkla to snap up Norway's ABC
Orkla is the Nordic region’s main bakery supplier, manufacturing ingredients such as margarine and butter blends, yeast, bread and cake improvers and mixes, marzipan and ice cream ingredients.
This latest acquisition will expand its product range with ingredients serving primarily the Norwegian meat and fish processing sector, thanks to ABC's portfolio of spices, marinades, flavourings, starter cultures, additives, meat casings and other functional ingredients.
ABC also manufactures packaging products.
In 2016 the firm recorded a turnover of NOK 188 million (€20m), compared to Orkla’s NOK 188 billion (€4bn).
The financial details of the deal, which must first be approved by the Norwegian competition authorities, have not been made public. Orkla will sign the agreement through its wholly-owned subsidiary Idun Industri.
Pål Eikeland, CEO of Orkla Food Ingredients and executive vice president (EVP) of Orkla, said the takeover would give it access to a new growth platform in the food industry.
“The purchase of [ABC] also offers potential for synergies with our existing ingredients operations in Norway, in the form of a more strategic focus on the out-of-home sector as well as savings in areas such as purchasing and distribution,” he added.
Founded in 1949, ABC was bought by Danish Crown subsidiary DAT-Schaub in 1995.
DAT-Schaub chief Jan Roelsgaard said the firm has had “nothing but good experiences” as owners of ABC but the time had come to concentrate its operations.
“We think that a Norwegian owner will be positive for the company,” he said, adding that DAT-Schaub and ABC would continue to work closely together.
A spokesperson for ABC said there were no planned job cuts, meaning the Oslo-headquarterd firm's 32 employees will now join the 18,000 employees that make up Orkla.
