Rieber & Søn acquisition boosts Orkla’s FMCG credentials20 August 2012Orkla has taken a ‘significant step’ in its drive to becoming a pure play branded consumer goods company after the Norwegian firm agreed a deal to buy 90.11% of family-owned food manufacturer Rieber & Søn. Orkla has paid the Rieber family NOK 66.58 ($11.20) a share in a deal which values Rieber & Søn at NOK $6.1 billion ($1.03 billion) on a debt-free basis. Listed on the Oslo Stock Exchange, Rieber & Søn produces a variety of bakery products including frozen pizzas, Polish bake mix brand Delecta and Swedish chilled and frozen cake maker Frödinge. In 2011, Rieber & Søn’s sales amounted to NOK 4.3 billion ($689.3 million) and EBITDA hit NOK 464 million ($78 million). "Rieber & Søn is a well-run group, with a strong heritage, talented employees and strong market positions. Together, Rieber & Søn and Orkla will be the leading Nordic food manufacturer, with the expertise and resources to develop strong local products and brands in competition with international players," said Åge Korsvold, Orkla’s chief executive. “The company has strong brands that are an optimal fit for Orkla's product portfolio as regards categories, production technology and geography," added Korsvold. "We have considered different strategic options and potential buyers, and we are confident that having Orkla as owner is the best alternative for further developing our companies and brands," added Fritz Rieber of the Rieber family. Closing of the transaction is conditional upon receiving approval from the European Commission and Russian competition authorities. The transaction is expected to close by the end of the first quarter in 2013. After completing the transaction with the Rieber family, Orkla will present a mandatory offer to the remaining shareholders in the company based on same price per share that will be paid to the Rieber family, and subsequently seek to have the company delisted from the Oslo Stock Exchange. Rieber & Søn has 2900 employees, of whom 1700 work outside of Norway. | |
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