Orkla ASA has agreed to purchase the Icelandic company Nói-Siríus HF (Nói Siríus), one of the leading manufacturers of chocolate and confectionery in the country.
The parties have not disclosed the value of the transaction, which is subject to approval by the Icelandic competition authorities.
The agreement will see Orkla acquire 80% shares in the company. The Norwegian conglomerate already had a minority shareholding of 20% in Nói Siríus for well over two years.
'Testament Of Our Success'
CEO of Nói Siríus, Finnur Geirsson, stated, “When one of the leading Nordic FMCG companies shows interest for Nói Síríus it is a clear testament of our success as a company and our brands. Both employees and owners of Nói Síríus have worked hard to achieve this kind of recognition.”
Nói Siríus is known for its iconic chocolate brands Síríus, Nóa Konfekt, Nóa Kropp, Nóa Páskaegg and Konsum.
The company generates more than 70% of its turnover from the company’s home market.
In 2020, the company’s turnover amounted to ISK 3.6 billion (approx. NOK 230 million).
'A Unique Position'
Orkla President and CEO Jaan Ivar Semlitsch said, “Nói Siríus holds a unique position in Iceland and is a good fit with Orkla’s portfolio of leading brands.
“We see a potential for creating value by continuing to build on Nói Siríus’s strong brands in Iceland while also expanding the product range. Chocolate, snacks and confectionery are core categories for Orkla, and Iceland is a growth market - we intend to be part of that growth.”
Nói Siríus also distributes certain strong, international brands of chocolate, snacks and breakfast products.
Established in 1920, the company is owned by several private investors and employs around 120 people.
Its headquarters, production plants and warehouse facilities are centrally located in Reykjavik.
Ingvill T Berg, Orkla EVP and CEO of Orkla Confectionery and Snacks, said, “With this acquisition, Orkla Confectionery and Snacks is represented by its own companies in all the Nordic markets and the Baltics, giving us a good platform for further growth.”
Management Changes
After 31 years as head of the company, Geirsson, plans to step down from the company after 1 August 2021.
Lasse Ruud-Hansen will take up his position, while Rolf Arnljot Strøm, the CFO of Orkla Confectionery and Snacks, step in as the new Chair of the board of directors of Nói Siríus.
Orkla Food Ingredients operates in Iceland through the partly-owned company Dragsbæk, as well as Kjarnavörur, Gæðabakstur, and Nonni litli.
It also sells several Orkla brands, such as Toro, Grandiosa, KiMs, OLW and Jordan, in Iceland through distributors.
Orkla’s Icelandic businesses generated total sales of NOK400 million in 2020. [Pic: Trygve Indrelid, NTB]
