Norway. Orkla ASA
| Date of agreement: | 10 Mar 2016 |
|---|---|
| Country: | Norway |
| Customer: | Orkla ASA |
| Amount in EUR: | EUR 60 million |
| Maturity: | 10 years |
| NACE sector / loan type: | Manufacture of food products and beverages |
Project
The loan has been provided to finance Orkla’s acquisition of the NP Foods Group, which includes the companies AS Gutta, NP Foods SIA, AS Staburadze, AS Laima, UAB Margiris and SIA Détente, from Nordic Partners Food Ltd.
The acquisition was completed in March 2015. The acquisition costs and subsequent investments in NP Foods Group will amount to EUR 125 million.
At the date of acquisition, NP Foods Group ran four production sites in Latvia and one in Lithuania, employing around 1,100 people. The acquisition is expected to double the scale of Orkla’s Baltic operations, making the company one of the largest suppliers of consumer goods to the region’s grocery sector.
Orkla ASA is a leading supplier of branded consumer goods and concept solutions for the retail, food service and bakery markets in the Nordic–Baltic countries and selected markets in Central Europe and India. The company has approximately 14,670 employees and is headquartered in Oslo, Norway.
Fulfilment of NIB's mandate
The acquisition significantly strengthens and expands Orkla’s product offering in the Baltic countries, and at the same time gives NP Foods access to new technology, innovation expertise and a well-documented food and product safety system. Orkla intends to increase local productivity and strengthen the position of Baltic brands against their multinational competition.
Since the acquisition process will not change the mode of operation, no negative environmental impact is expected.
Sustainability summary
A third-party environmental due diligence has been carried out for the medium-risk production sites. No major environmental concerns were identified.
