Norwegian food group Orkla has announced that it has signed an agreement to divest its potato flatbread brand Vestlandslefsa to Skagerrak-Holding AS and its subsidiary Baxt Lierne AS for an undisclosed sum.
The transaction includes the recipes and production equipment used by the brand, as well as the Li-Klenning trademark.
The divestiture aims to help the food giant to streamline its portfolio and concentrate on the production of pizza at its facility in Stranda, Norway, Orkla added.
In 2019, net sales revenues from lefse (soft potato flatbread) products of the brand amounted to approximately NOK 20 million (€1.8 million).
'A Long History'
CEO of Orkla Foods Norge, Paul Jordahl, commented, “Vestlandslefsa has a long history and is a favourite of many Norwegian consumers. We are glad that the business will be continued in the Baxt group.
“The sale is part of Orkla’s strategy to concentrate resources on our priority growth areas.”
In 2013, Orkla added Vestlandslefsa to its portfolio as part of the acquisition of Rieber & Søn.
Baxt is a supplier of bakery products to the Norwegian grocery sector, convenience stores, petrol stations and the out-of-home sector, the company said.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.