Orkla acquires chocolate company

23 Aug 2019

Orkla has signed an agreement to purchase 20% of the Icelandic company Nói-Siríus, Iceland’s leading chocolate and confectionery manufacturer.

Over 70% of the company’s turnover is generated by domestic market sales. Moreover, a growing percentage of the company’s sales are export and tax-free sales. The business also distributes some global brands of chocolate, snacks and breakfast products.

Orkla acquires chocolate company

Orkla operates in Iceland through the partly-owned company Dragsbæk, which is part of the Orkla Food Ingredients business area. In addition, several of Orkla’s brands such as Toro, Grandiosa, KiMs, OLW and Jordan are sold in Iceland through distributors.

“Nói Siríus holds a unique position in Iceland and is a good fit with Orkla’s portfolio of leading brands. Chocolate, snacks and confectionery are showing good growth and are core categories for Orkla. We see a potential for creating value by utilising the companies’ strengths across markets, improving production efficiency and building on our position in Iceland, which is a growth market,” said Jeanette Hauan Fladby, Orkla Executive Vice President and CEO of Orkla Confectionery & Snacks.

Nói Siríus was established in 1920 and has about 150 employees. The company is currently owned by several private investors. The business’s head office, production plants and warehouse facilities are centrally located in Reykjavik. The company is headed by Managing Director Finnur Geirsson, who will continue to lead the company after completion of the agreement.

The company had a turnover of ISK 3,436 million (approx. NOK 244 million) in 2018.

The parties have agreed not to disclose the purchase price. Under the agreement, Orkla has the possibility to purchase the remaining shares after 2020. The agreement is contingent on the approval of the Icelandic competition authorities.

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