Orkla to expand Greece presence with acquisition

4 Apr 2019

Through its wholly-owned subsidiary Orkla Food Ingredients, Orkla has entered into an agreement to purchase the majority of the shares in the Greek company Kanakis

Kanakis sells and distributes confectionery, bakery and ice cream ingredients in Greece.

Orkla to expand Greece presence with acquisition

Kanakis is listed on the Athens stock exchange, and the founder and his family own approximately 86% of the shares. Orkla has entered into an agreement to acquire approx. 65.8% from Stelios and Maria Kanakis at a purchase price per share of €4.35. In connection with this agreement, Orkla has made a voluntary tender offer to all Kanakis shareholders at an offer price of €4.36 per share. Completion of the share purchase agreement and the tender offer are subject to Orkla acquiring 4.18% of the shares in Kanakis from minority shareholders following announcement of the tender offer. If Orkla attains an ownership interest of over 90% in Kanakis, a squeeze-out process will be implemented and the company will be delisted. At the same time, 20% of the shares will be sold back to the Kanakis family at the same price as in the voluntary tender offer, with the result that the family will own 20% and Orkla 80% of the company.

“Kanakis has a leading position in our core categories, in addition to a broad-based network of customers and suppliers who are well-known to Orkla Food Ingredients. The company is well-positioned in a region that is seeing good growth,” said Johan Clarin, Orkla Executive Vice President and CEO of Orkla Food Ingredients.

The business was established in 1985 by Stelios Kanakis, who is managing director of the company and will continue to serve in that position. The company has 73 employees and had a turnover of €20.2 million (approx. NOK 197 million) in 2018, and EBIT of €3.0 million.

“Orkla is very impressed by the company that Stelios and his family has built over the years and we are very much looking forward to working with the family and to continue building the company together in the future,” said Clarin.

The company is expected to be consolidated into Orkla’s financial statements in the second quarter of 2019.