27 Aug - Orkla Brands is selling its shares in Kotlin and Elbro to the Polish company Agros Nova.
Orkla took over Kotlin with accounting effect in 1997 and Elbro in 2004. In the past few years, an extensive reorganisation process has been carried out, the number of man-years has been substantially reduced, and the companies' portfolio is now concentrated on a smaller number of more profitable products.
"Nevertheless, we are not satisfied with the companies' market positions and financial performance in the Polish market. It is time for a new owner, who can help strengthen the companies' future possibilities in the Polish market," says Paul Jordahl, Managing Director of Orkla Brands International.
The sale is subject to the approval of the Polish competition authorities.
Kotlin manufactures and markets ketchup, tomato-based sauces, jams, ready meals, pizza and preserved vegetables. Elbro's main products are frozen dumplings/noodles and ravioli/pirogues. In 2007, the companies' consolidated sales totalled NOK 240 million (PLN 114 million). At the start of 2008, Kotlin and Elbro employed a workforce totalling 218 man-years.
Agros Nova is a leading producer of jams, soups, juices and nectars and preserved vegetables in Poland. The company exports its products to 25 countries, the US and the UK being its biggest export markets.
Orkla Brands International comprises SladCo and Krupskaya (both in Russia), Orkla Foods Romania, Kotlin and Elbro (Poland), Felix Austria (Austria) and MTR Foods (India). Sales for Orkla Brands International amounted to NOK 2,262 million in 2007, and at year-end it employed a workforce equivalent to 6,047 man-years. Orkla Brands International is part of the Orkla Brands business area, which is a leading developer, marketer and supplier of strong propriety brands and concepts. In 2007, Orkla Brands had operating revenues of NOK 22,253 million and employed a workforce equivalent to 15,000 man-years.