Orkla Brands has concluded an agreement for the sale of Bakers. The buyer is NorgesGruppen.

Orkla has owned Bakers since 1991, delivering breads, cakes and bakery goods to grocery stores, petrol stations, kiosks and other large-scale customers. Bakers' most familiar products include Bakers Naturlig Sunt, Bakern's Ferske, Birkebeiner bread and Inger's SuperRug.  

Bakers currently has 770 employees and had operating revenues of about NOK 1.2 billion in 2010. The parties have agreed not to disclose the purchase price. The agreement covers all Bakers' bakeries, with the exception of the business involving the production of pizza at Sem, which will be continued by Stabburet.

"In a demanding market, Bakers has undergone significant restructuring in recent years and is currently a leading bakery enterprise in Norway. However, Bakers differs considerably from Orkla Brands' other branded goods operations. Bakery goods must be fresh each day, which requires a different type of operational and distribution system from our other grocery products. Structural changes, substantial capacity and keen competition have characterised and will continue to characterise the bakery industry," comments Torkild Nordberg, CEO of Orkla Brands.

"Over the years, Bakers has been one of the main suppliers of bakery goods to our stores. This acquisition reinforces our platform and our opportunities to improve our selection of breads, cakes and bakery goods. We will continue to carry products from other bakeries as well to ensure competition. Bakers will also continue to meet its delivery commitments to existing customers. As the new owner, we will initially familiarise ourselves with the bakeries and establish a dialogue about future challenges," reports CEO Tommy Korneliussen of NorgesGruppen.

The agreement is subject to the approval of the Norwegian Competition Authority.

For more information, please contact:
Per Roskifte, Executive Vice President, Corporate Communications, NorgesGruppen
Mobile: +47 415 16 500

Håkon Mageli, SVP Corporate Affairs, Orkla Brands
Mobile: +47 928 45 828