Norwegian business conglomerate Orkla has completed its acquisition of 84% of the shares in Denali Ingredients, a US-based ice cream ingredients business.
In a statement, the group said that the transaction 'has been approved by relevant competition authorities' and has therefore been completed.
Denali Ingredients has been consolidated into Orkla's financial statements as of 1 November 2022.
Orkla entered into an agreement to purchase Denali Ingredients through its Orkla Food Ingredients (OFI) arm at the start of October.
The purchase price, on a cash and debt-free basis, is $200 million, equivalent to around NOK 2.2 billion, the group said.
'A Significant And Natural Step'
Commenting on the purchase at the start of October, Nils K. Selte, President and CEO of Orkla, said that the acquisition of Denali Ingredients is "a significant and natural step for OFI into the market for ingredient solutions for the US ice cream industry. The food ingredients sector is fragmented with significant potential for further consolidation and growth.
"Based on these opportunities we will now initiate a process to seek a long-term partner for OFI to accelerate growth and value creation.”
Denali Ingredients Performance
In its current financial year, Denali Ingredients is expected to have a total turnover of around $99 million (€100 million), and a run-rate normalised EBITDA of $14.4 million (€14.55 million).
In the third quarter of its financial year, Orkla reported a 12% increase in operating revenue to NOK 14.8 billion (€1.45 billion), while operating profit rose by 30% to NOK 2.22 billion (€220 million).
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