Orkla has announced a partnership with Rhône, a global private equity firm focused on investments in transatlantic enterprises, which will acquire 40% of the shares of Orkla Food Ingredients AS ("OFI") in a transaction valuing the enterprise at 15.5 billion Norwegian Krone (NOK).

The partnership will enable the OFI group to continue its development and consolidation of existing activities with the ambition to support shareholder value growth. The Rhône team has experience in the consumer sector and the food and beverage industry through past and current investments.

"The search for a partnership for OFI attracted strong interest. I am proud that we are joining forces with an organization of the highest quality like Rhône," said Nils K. Selte, President and CEO of Orkla.

"Rhône is excited to collaborate with Orkla in this new phase of OFI growth. OFI is a market leader in many European countries and North America, where its regional and local differentiated approach to its customer base enhances value," said Patrick Mundt, Managing Director at Rhône.

In Romania, OFI owns the company Orkla Foods Romania, which will continue its mission to improve consumers' lives through locally adapted brands and recipes that help them lead a healthier lifestyle. The company's portfolio in Romania includes brands like Tomi, Bunătăți de la Bunica, Ardealul, LaMinut, Unirea, Linco, Hame, Antrefrig, and Naturli, catering to final consumers, as well as brands like Credin, Selecta, Paticrem, Sonneveld, addressing partners in the confectionery, bakery, and pastry industry.

OFI was established by Orkla in 1999 and has since become a significant provider of food ingredient solutions in Europe, covering a wide range of categories, from bakery, pastry, and ice cream ingredients to plant-based dairy alternatives for consumers.

The transaction is expected to be completed by the end of the first quarter of 2024, subject to customary closing conditions, including approvals from relevant authorities.

About Orkla

Orkla is a leading industrial investment company, focusing on consumer-oriented brands and companies. The current investment portfolio includes 12 companies in areas such as paints and coatings, food, confectionery and snacks, health, and food ingredients, among others.

In 2022, Orkla had operational revenues of 58.4 billion NOK and a net profit of 5.3 billion NOK. Companies within the Orkla portfolio employ over 30,000 people. Orkla is listed on the Oslo Stock Exchange, with headquarters in Oslo.

About OFI

OFI was established in 1999 and is present in 23 countries with over 4,000 employees. Today, the business is organized into three clusters. The bakery, pastry, and confectionery ingredients segment represents approximately 63% of OFI's operational revenues, encompassing both production and sales and distribution, covering a wide range of ingredient and consumer product categories.