Norwegian food company Orkla has announced that it is set to acquire Danish cereal maker Struer Brød.
The Oslo-based group says that this deal will strengthen its production capacity in the breakfast category, which is experiencing 'good growth', and expansion into new markets.
Struer has supplied Orkla since 2012, providing cereals for the group's Paulúns, Bare Bra and Det Gode Liv brands.
Orkla added that it is currently one of Struer's largest customers. In 2016, Struer recorded a turnover of DKK 114 million (NOK 13 million), about half of which consisted of sales to Orkla.
“Struer delivers high-quality products and has strong product development expertise," said Atle Vidar Nagel Johansen, CEO of Orkla Foods.
"We are pleased with our collaboration with Struer, and this acquisition is strategically important to ensure sufficient production capacity and product development for the future.”
Financial details of the transaction were not disclosed.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.
