Norwegian food producer Orkla has announced its acquisition of the Swedish company Health and Sports Nutrition Group HSNG AB.
The move sees Orkla investing in HSNG’s e-commerce portals Gymgrossisten and Bodystore. The former targets athletes and active sports enthusiasts, while the latter offers products for health and wellness-conscious consumers.
The purchased websites receive a combined 24 million visits per year, making HSNG the largest online health and sports nutrition company in the Nordic region, the company says.
HSNG offers several products through its two portals, including dietary supplements, health and well-being products, activewear, equipment and accessories. It sells proprietary brands and products distributed on behalf of third products.
It is currently owned by Qliro Group and has around 170 employees. Its headquarters are in Stockholm and it has a 12,700 square metre logistics centre in Trollhättan, 75km north of Gothenburg.
Orkla hosts its own range of health products through its business unit Orkla Care including dietary supplements, sports nutrition and weight control segments.
However, it said that HSNG’s operations will be maintained as a separate unit in the Orkla Care business area.
“Orkla’s goal is to strengthen its focus on digital marketing and sales, and through this acquisition will gain proximity to a large number of engaged consumers,” said Stig Ebert Nilssen, Orkla EVP and CEO of Orkla Care. “Health is a priority area for us, and we see good opportunities for collaboration with our existing activities, in the form of greater distribution through traditional sales channels and, not least, enhanced consumer insight.”
The companies agreed on a purchase price of SEK 360 million (€36,6 million) on a debt-free basis, according to Orkla.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Kevin Duggan. Click subscribe to sign up to ESM: The European Supermarket Magazine.