Orkla acquires Nordic confectionery business

Orkla Confectionery & Snacks has entered into an agreement to purchase 100 per cent of the shares in Bubs Godis AB, a Nordic confectionery company.

Bubs Godis (“Bubs”) is a fast-growing company with a strong position in confectionery in the Swedish sweets and candy market, in addition to selling to other Nordic countries. Bubs has developed many iconic pick-&-mix favourites sold both in bulk and in bags. Sustainability is a core focus in the company’s operations, and the majority of its portfolio consists of vegan products.

“This acquisition is well aligned with our strategy of strengthening our positions in the Nordic markets. Bulk confectionery is a growing category and even when it is sold as pick & mix, consumers prefer well-known brands like Bubs,” says Ingvill T. Berg, CEO of Orkla Confectionery & Snacks.

The purchase of Bubs will be carried out through Orkla Confectionery & Snacks Sverige, which holds a strong position in the snacks and biscuits categories.

“Bubs is a robust company and a good brand that will complement the rest of our portfolio and give us a solid base for continued growth,” says Patrick Axzell, CEO of Orkla Confectionery & Snacks Sverige.

The sellers are members of the Lindström family, who established the company in 1992. In addition, CEO Niclas Arnelin has a small ownership interest that is also part of the sale.

“We are glad to pass the baton to Orkla and are confident that they will further develop the company and take it to the next level,” says Ulrik Lindström on behalf of the owner family.

Bubs has had average annual sales growth of 10 per cent since 2012/2013, and had a turnover of SEK 211 million in 2021/2022 (financial year ending 30 June 2022).

“To continue this growth journey, we will build further on the company’s strategy, while also exploiting the advantages of the company becoming part of Orkla. In distribution, among other things, we see opportunities to make good use of our becoming a bigger company,” says Patrick Axzell.

Bubs will be operated as a subsidiary of Orkla Confectionery & Snacks Sverige and its present CEO Niclas Arnelin will remain in the company.

The sale is expected to be completed during the first quarter of 2023. The parties have agreed not to disclose the purchase price.

Bubs Godis AB

Bubs was established in 1992 in Jönköping, where the company has a modern production plant that has been adapted for further growth. Bubs holds a strong position on Nordic pick & mix confectionery shelves with several iconic figures and flavours. Besides bulk sweets, they sell products in bags under brands such as Bubs Skalle and Bubs Goody. The company has 55 employees and had a turnover of SEK 221 million in 2021/2022 (non-standard accounting year).

Orkla Confectionery & Snacks Sverige

Orkla Confectionery & Snacks Sverige makes life’s small moments bigger by offering consumers well-known, much-loved biscuit, snack, confectionery and crispbread brands. The company was established in 2014 by merging OLW and Göteborgs Kex. The company’s headquarter is in Solna and it has a total of 550 employees. Its turnover totalled SEK 1.7 billion in 2021.

Orkla Confectionery & Snacks

Orkla will be transformed into a leading industrial investment company, focused on brands and consumer-oriented companies. With effect from 1 March 2023, the former business area Orkla Confectionery & Snacks will be established as one of 12 portfolio companies. Orkla Confectionery & Snacks has sales revenues¹ of NOK 7.5 billion, and it operates in Sweden, Norway, Finland, Denmark, Iceland, Estonia and Latvia. Orkla Confectionery & Snacks has a wide variety of brands such as Nidar, OLW, Göteborgs Kex, KiMs, Nói Síríus, Sætre, Ballerina, Kalev, Panda and Laima.

¹ Rolling 12 months as at end of Q3 2022.

Orkla ASA

Oslo, 20 December 2022

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