Orkla Health has completed the purchase of 100% of shares in NutraQ 2 AS, a supplier of subscription-based health and wellness products in the Nordic region.
The acquisition has now been approved by all relevant competition authorities.
NutraQ is Orkla's first venture into the subscription-based business model.
The business, set up in Norway in 2002, has expanded operations to Denmark, Finland, and Sweden, as well as in the Czech Republic, Slovakia, the Netherlands, and Poland.
The four Nordic countries account for approximately 90% of the group's turnover.
The company has around 170 employees and is headquartered in Oslo, Norway.
Currently, NutraQ has over 400,000 active subscriptions and has experienced strong growth in the past few years. The number of active subscriptions increased by an average of 13% per year in the period 2018-2020, Orkla added.
The company reported a turnover of NOK862 million in 2020 and an EBITDA of NOK188 million.
Orkla president and CEO, Jaan Ivar Semlitsch, said, "This acquisition will offer Orkla exciting growth opportunities. Both the health category and direct-to consumer sales are growing areas.
"I am impressed by the way NutraQ has used subscription solutions to reach consumers directly in their own homes. We will continue to develop NutraQ’s strong concepts, while also exploring new possibilities for direct-to-consumer sales."
Orkla Health is purchasing NutraQ from the investment company Impilo and Sana Pharma Holding.
The parties have agreed on a price of NOK3.1 billion on an enterprise basis, with NutraQ to be consolidated into Orkla’s financial statements as of 1 July 2021.
To maintain NutraQ’s individuality and direct-to-consumer sales competency, the company will remain a stand-alone entity.
The company’s CEO Gustaf Solerød Christensen will remain in his position together with the rest of the executive management.