Norwegian consumer goods and industrial conglomerate Orkla ASA
(ORK.OS ) said Monday it has signed an agreement with the Rieber
family to buy their shares in Norwegian food company Rieber &
Son ASA (RIE.OS), in a deal that values the company at 6.1 billion
Norwegian kroner ($1.03 billion).
The agreement involves buying the Rieber family's 90.11% shares
at NOK66.58 a share and "in so doing, Orkla takes a significant
step towards becoming a pure play branded consumer goods company,"
the company said.
Rieber & Son, which supplies grocery stores in the Nordic
countries, parts of Central Europe and Russia, in 2011 reported
earnings before interest, tax, depreciation and amortisation of
NOK464 million.
"With this acquisition, Orkla expands its product portfolio and
gains strong market positions in categories that are entirely new
to us," Orkla Chief Executive Age Korsvold said.
"Together, Rieber & Son and Orkla will be the leading Nordic
food manufacturer, with the expertise and resources to develop
strong local products and brands in competition with international
players."
The acquisition will be funded by drawing on committed credit
facilities and closing of the transaction is conditional on
European Commission and Russian competition clearance, but it's
expected to close by the end of the first quarter of 2013.
After completion Rieber & Son will be delisted from the Oslo
Stock Exchange.
Orkla shares closed Friday at NOK43.01, valuing the company at
NOK43.82 billion.
-Write to Dominic Chopping at dominic.chopping@dowjones.com
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