Through its wholly-owned subsidiary Orkla Food Ingredients, Orkla has entered into an agreement to purchase Zeelandia Sweden, a supplier of margarine, vegetable oils and bakery ingredients to the Swedish market.
Zeelandia Sweden has most of its sales in Sweden, and exports to Finland, the Baltics and Norway.
The company sells primarily to the bakery industry. Following the transaction, the company’s name will be changed to Credin Sverige, and the company will become part of Credin Group.
“The acquisition of Zeelandia Sweden is strategically right for strengthening Orkla’s position and production capabilities in our Nordic home markets in categories with which Orkla Food Ingredients is very familiar. Their product portfolio makes a good fit with the Credin Group,” said Johan Clarin, Orkla Executive VP and CEO of Orkla Food Ingredients.
Zeelandia Sweden is currently owned by the Dutch company Koninklijke Zeelandia Groep, which was established in 1900 by the Doeleman family. The company that is being sold has around 60 employees and is headed by CEO Karin Andersson. The company’s headquarters and production facilities are located in Stenkullen, near Gothenburg, Sweden.
Zeelandia Sweden had a turnover of €22.9 million (approx. NOK222.5 million) in 2018. The company is expected to be consolidated into Orkla’s financial statements in the second quarter of 2019.
The parties have agreed not to disclose the purchase price. The agreement is subject to the approval of the Swedish competition authorities.