The agreement, subject to approval from relevant Hungarian authorities, is expected to close during the first quarter 2023.
Paul Jordahl, CEO of Orkla Foods Europe said, "We have achieved success in corresponding categories in the Czech Republic and Slovakia and will continue to build on this experience.
"This acquisition is also in line with Orkla’s strategy to grow within the out-of-home channels."
The acquisition of Khell-Food will be carried out by Orkla Foods Česko a Slovensko (CaS), which is part of Orkla Foods Europe, the company noted.
CaS is operates in the Hungarian market through its subsidiary Hamé Hungary.
Khell-Food is being sold by the founder Zoltán Kelényi, who will continue as CEO of the company.
The company has reported annual sales growth of 11% from 2017 to 2021, and in 2021 it generated turnover of around NOK 85 million based on the current exchange rate.
Da Grasso will be consolidated into Orkla's financial statements as of 1 January 2023, the company noted.
In July of this year, Orkla reported a 39% increase in second quarter operating profit, to NOK 1.75 billion (€170 million), as the business achieved strong growth in its branded consumer goods business.