Orkla buys majority stake in UK ingredients supplier Orchard Valley Foods | Progresiv
Nordic food group Orkla has bought another business-to-business supplier, adding to its ingredients operations with the acquisition of a majority stake in UK firm Orchard Valley Foods. 
Orkla has paid an undisclosed sum for 85% of Orchard Valley Foods, which supplies "ingredients and accessories" to bakery, chocolate and ice cream companies in the UK and in continental Europe.
"The acquisition of Orchard Valley complements Orkla's current position in the UK ice cream ingredients and accessories segment. It also strengthens our position in categories that are well known to Orkla Food Ingredients. This acquisition offers potential for increased exports and synergies with our present operations," Pål Eikeland, the CEO of Orkla's food ingredients business, said.
Orchard Valley generated a turnover of 23.9 million pounds (29.9 million dollars) for the year to the end of May. Orkla said the majority of Orchard Valley's turnover was made domestically but added the UK firm does have "increasing exports to Europe". Orchard Valley filed a "normalised EBITDA" of 2 million pounds for its last financial year, Orkla said.
The companies agreed not to disclose the amount Orkla paid for its stake. Earlier this month, Orkla announced a deal to buy Dutch ice cream industry supplier Laan Heiloo. (www.just-food.com)
