News

Orkla acquires 90% of Easyfood

9 Jan 2019

Through its wholly-owned subsidiary Orkla Foods Danmark, Orkla has entered into an agreement to purchase 90% of the shares in Easyfood, a Danish producer of bread-based convenience products for the out-of-home channel.

Through its wholly-owned subsidiary Orkla Foods Danmark, Orkla has entered into an agreement to purchase 90% of the shares in Easyfood, a Danish producer of bread-based convenience products for the out-of-home channel.

More and more consumers are eating outside their home, Orkla notes. Since 2000, the company says, on the basis of this trend, Easyfood has established itself as a solid supplier to the out-of-home market in Denmark, and has a growing customer base that includes in-store bakeries, convenience stores, cafés, petrol stations and food service.

“Easyfood is well positioned in a growing market for convenience products. Orkla holds a strong position in the Danish grocery sector, in a wide range of food categories. Through our acquisition of Easyfoood, we are strengthening our position in the out-of-home market and in channels with higher growth than traditional grocery stores,” said Carsten Hänel, CEO of Orkla Foods Danmark.

“Orkla is the Nordic region’s leading branded consumer goods company and will provide valuable expertise and support in Easyfood’s future growth. 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,” said Flemming Paasch, CEO of Easyfood.

Easyfood currently has 144 employees. The company’s headquarters, warehouse and production facilities are located in Kolding, Denmark, where the business was established in 2000. The present owners are Flemming Paasch and Hemming Van; Paasch will remain in the company as CEO and minority shareholder.

The company had a turnover of DKK316.1 million (approx. NOK415 million) in the last 12 months as at 30 October 2018, and normalised EBITDA of DKK33.7 million (approx. NOK44 million) in the same period. While the company’s turnover is mainly generated in Denmark, exports account for a growing share, currently around 14%.

The parties have agreed on a purchase price that values the company at DKK330 million (approx. NOK433 million). The agreement is subject to the approval of the Danish competition authorities.