Norwegian takeover for south Shropshire firm
A Norwegian consumer goods firm has taken a controlling stake in highly-decorated Shropshire food company Orchard Valley Foods.
The business last year won the Queen's Award for Enterprise in the field of International Trade, as well as Company of the Year title at the Shropshire Business Awards.
Now Norwegian company Orkla Food Ingredients has acquired an 85 per cent stake in the company, which has its headquarters at Burford, on the Shropshire side of the Worcestershire border near Tenbury Wells.
The deal for an undisclosed sum will also give Orkla the option to buy the outstanding 15 per cent of the shares.
“Orchard Valley Food and Orkla Food Ingredients are a good fit", said Pal Eikeland, chief executive of Orkla.
"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."
Orchard Valley supplies ingredients and accessories to the UK bakery, chocolate and ice cream market. Most of its turnover is generated in the UK, but the company also has increasing exports to Europe.
The company was established in 2004 and has achieved consistent growth in sales and profitability over several years.
Orkla Food Ingredients holds strong positions as a bakery ingredients supplier in the Nordic region and selected countries in Europe, and has built up a robust position in the ice cream ingredients and accessories segment in the UK.
Privately-owned Orchard Valley employs 72 people at Burford and its distribution centre at Leominster. In the year ending May 31 2016, it posted a turnover of £23.9 million and earnings of £2 million.
Orkla is listed on the Oslo Stock Exchange and its head office is in Oslo. In 2016, the Group had a turnover of approximately 38 billion krone (£3.5 billion), and around 18,000 employees.
It is the Nordic region's biggest bakery ingredients supplier, producing margarine and butter blends, yeast, bread and cake improvers and mixes, marzipan and ice cream ingredients.
