Orkla Home & Personal has entered into an agreement to acquire 100% of the shares of the branded consumer goods company Cederroth.
Through this acquisition, Orkla Home & Personal will become one of the leading Nordic suppliers of personal care, health, wound care and household cleaning products.
Cederroth has a product portfolio of well-established brands such as LdB, Asan, Bliw, HTH, Salvequick, LongoVital, Multiplex, Samarin, Allévo and Grumme. Cederroth operates in Sweden, Finland, Denmark, Norway, Poland and Spain. The company has four factories located in Sweden, Denmark, Poland and Spain. In 2013, Cederroth achieved a turnover of SEK 1,984 million, and EBITDA of SEK 194 million. The company has a total of 850 employees.
“This acquisition is strategically attractive, and is especially important as it strengthens Orkla Home & Personal’s presence in Sweden. Cederroth is a robust Nordic player and offers considerable potential for value creation. Significant cost and top line synergies have been identified,” says Orkla President and CEO Peter A. Ruzicka.
The product categories offered by Orkla Home & Personal and Cederroth are largely complementary. In addition, wound care will be an attractive new category for Orkla. Cederroth also holds a well-established position in the Nordic pharmacy market. Once the agreement has been completed, Cederroth’s operations will be incorporated into the Orkla Home & Personal business area.
“Together, Cederroth and Orkla Home & Personal will have even better insight into local consumer preferences and customer needs.. By merging their operations, Cederroth and Orkla Home & Personal are augmenting their overall competitiveness in local markets where there is significant international competition,” says Stig Ebert Nilssen, Orkla Executive Vice President and CEO of Orkla Home & Personal.
The purchase price is SEK 502 million. This purchase price values the entire company (on a debt-free basis) at SEK 2,015 million, based on Cederroth’s balance sheet as of 30 September 2014. The purchase price will be funded through Orkla’s existing credit facilities.
The sellers are funds managed by CapMan and Litorina. The company’s senior management and other minority shareholders will also sell their ownership interests of approximately 13 per cent.
The agreement is subject to the approval of the relevant competition authorities. The transaction is expected to be completed no later than within Q3 2015.
More detailed information about Cederroth, including facts about its governance and management as well as key figures, is included in appendix.
Orkla is a leading supplier of branded consumer goods and concept solutions to the grocery, out-of-home and bakery markets in the Nordics, the Baltics and selected markets in Central Europe and India. Orkla is listed on the Oslo Stock Exchange and has its head office in Oslo. In 2013, the Group had a turnover of NOK 33 billion and approximately 17,000 employees at year-end.
Orkla Home & Personal today comprises five branded consumer goods businesses which primarily serve the Nordic region:
Lilleborg (personal care and home care products), Lilleborg Profesjonell (full-range supplier of hygiene and cleaning solutions for the professional market), Orkla Health (dietary supplements and health products), Pierre Robert Group (textiles sold through the grocery channel) and Orkla House Care (painting tools and cleaning products).
Oslo, 15 January 2015