Orkla acquires attractive gut health brand in Poland

Orkla has, through its wholly owned subsidiary Orkla Health Poland, signed and completed an agreement to acquire the brand Colon-C through an asset transaction. With this acquisition, Orkla is strengthening its foothold in the rapidly growing gut health category.

Colon-C is a leading brand in the constipation category and a strong market leader in the fibre segment in Poland. By acquiring Colon-C, Orkla expands its platform in gut health, which already consists of the brands Husk and Samarin.

"The acquisition of Colon-C is strategically important for strengthening Orkla Health's position in a growing category. Poland is a priority market for Orkla Health, and we have identified potential opportunities for value creation in the form of both increased sales and cost synergies. With close to 75% of sales through pharmacies, the acquisition of Colon-C also strengthens Orkla Health's presence in the pharmacy channel," says Henning Søgaard, CEO Orkla Health Group.

Consumers value the product portfolio for its effectiveness. The brand Colon-C is a European approved trademark with growth potential also outside the Polish market.

Colon-C achieved a turnover of PLN 14.6 million (approx. NOK 31 million) in 2015. The brand will be consolidated into Orkla's accounts as of 1 October 2016. The transaction does not involve transfer of employees or production sites.

Before the transaction, Colon-C was owned by A-Z Medica, which is a specialist producer and distributor of natural herbal supplements, dietary supplements and cosmetics, established in 2001.

About Orkla Health
Orkla Health is one of the Nordic region's largest marketers and manufacturers of a broad range of health products in the omega-3, vitamin and mineral supplement, weight reduction and sports nutrition segments. Some of the best-known brands are Möller's, Nutrilett, Gerimax, LongoVital, Collett, Curamed, Samarin and Maxim. Home markets are the Nordic countries, the Baltics and Poland, but the company is also active in international sales in many countries. The products are primarily sold through grocery stores, health food stores and pharmacies. Orkla Health has more than 510 employees, and total turnover in 2015 was in excess of NOK 1.6 billion. Orkla Health is a part of Orkla's business area Orkla Care.

Orkla Health AS
Oslo, 3 October 2016

Ref.:

Orkla Health

CEO
Henning Søgaard
Tel.: +45 24 48 77 83

Director Corporate Communication
Inger Marie Ingdahl
Tel.: +47 92 84 58 81