Norwegian food conglomerate Orkla has announced that it has acquired 80% of the shares in Finnish foodservice company Seagood Oy Fort Deli (Fort Deli) for an undisclosed sum.
The acquisition marks the company's expansion into the foodservice and out-of-home segment in Finland, and strengthens its foothold in one of its core markets.
Fort Deli is well known in Finland for Hank's Sauces, Nonna's Sauces, and Texas Pete Hot Sauce and is an established supplier of frozen products, sauces, and condiments in Finland, Orkla added.
President and CEO of Orkla, Jaan Ivar Semlitsch, commented, "With this acquisition, we follow through on our strategy to invest in the foodservice and out-of-home markets, which we see as significant future growth platforms.
"In addition, we continue our expansion in the growing Finnish home market, where both our branded consumer goods businesses and our out-of-home business through Kotipizza show excellent momentum."
Fort Deli, established in 1996 with headquarters in Vantaa, Finland, has 10 employees, and its turnover amounted to €8.7 million (NOK90 million) in 2020.
The company will be consolidated into Orkla's financial statements as of 1 March 2021, Orkla added.
The chief executive of Fort Deli, Henrik Poulsen will retain 20% of the company's shares and will continue to serve as CEO.
CEO of Orkla Suomi, Pasi Flinkman, added, "With this agreement, we combine Orkla’s strong product portfolio with Fort Deli’s well-established customer relationships, competence, and solutions for the out-of-home market.
"The acquisition is in line with our ambition to increase the focus on our foodservice business and we see great potential in working together with the Fort Deli organisation."
In Finland, Orkla operates through four companies with approximately 719 employees.
In 2020, the combined operating revenue generated by the four companies amounted to €425 million (NOK4.5 billion).
© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.