Orkla's acquisition of Struer will help drive innovation at the company.
OSLO, NORWAY — Orkla Foods Sverige has entered into an agreement to purchase Danish cereal and breadcrumb maker Struer Brød A/S. Terms of the purchase will not be disclosed.
“Struer delivers high-quality products and has strong product development expertise,” said Atle Vidar Nagel-Johansen, Orkla executive vice-president and chief executive officer, Orkla.
The purchase will allow the company to increase its production capacity and expand its offerings in the growing health foods category, Mr. Nagel-Johansen added.
Orkla offers a selection of healthier breakfast products through its Paulúns, Bare Bra and Det Gode Liv brands, in addition to its wide range of CPG products. Struer has supplied breakfast cereals to Orkla since 2012.
Struer is owned by Lantmännen Cerelia A/S, Givesco A/S and JN-Holding ApS and has 44 employees. In 2016, it achieved sales of DKK 114 million ($187 million), about half of which consisted of sales to Orkla. The company will be consolidated into Orkla’s financial statements immediately.