Orkla announces the sale of Lilleborg
Orkla has entered into and completed an agreement to sell 100% of the shares in Lilleborg AS to Solenis, effective as of 12 June 2024. The transaction values Lilleborg at NOK 600 million on a cash and debt free basis.
Lilleborg supplies professional cleaning solutions and is the market leader in the Norwegian B2B market. Lilleborg has since 2004 been the exclusive distributor for Diversey, a Solenis Company, in the Norwegian market, and offers, in addition, a wide portfolio of products and services. The company has more than 120 employees.
Solenis is a leading global producer of specialty chemicals for water-intensive industries. The company has a strong global presence with operations in 130 countries, supported by 69 manufacturing facilities and 16,100 employees. In March 2023, Solenis announced the acquisition of Diversey.
“This transaction is a milestone in Orkla’s new strategy after becoming an industrial investment company. By reducing the number of portfolio companies and simplifying our structure, we pave the way for a more targeted and disciplined capital allocation in the portfolio. We are proud of the 190+ years of Lilleborg history, both before and during Orkla ownership – having built a strong and trusted company brand and a position as Norway’s market leader within its industry”, says President & CEO of Orkla, Nils K. Selte.
“Lilleborg has historically delivered solid financial results and showed resilience even in challenging market conditions, thanks to high-quality products and brands, and a competent, passionate organization. Given the longstanding collaboration with Diversey in the Norwegian market, we firmly believe that Solenis is the ideal new home for Lilleborg. We are confident that they will continue to foster the growth and success of Lilleborg in the future. Finally, we would like to thank CEO Silje Ebbell Tøge and the rest of the Lilleborg team for the dedication and hard work over decades and wish them all the best in their future endeavours”, says Maria Syse-Nybraaten, EVP and Investment Executive in Orkla.
In 2023, Lilleborg had a turnover of NOK 574 million and an EBIT (adj.) of NOK 51 million. Orkla's profit from the sale is estimated to NOK 475 million.
Commenting on the acquisition, John Panichella, CEO, Solenis, said, “We've had a great partnership with Lilleborg for many years working with our institutional and food & beverage business, so we are extremely excited to welcome the Lilleborg team to the Solenis family. Lilleborg’s highly competent, motivated and well-trusted sales, marketing and R&D teams will allow for significant opportunity to cross-sell water treatment when combined with Solenis’ expertise.“
About Lilleborg
Lilleborg is a leading provider of effective and sustainable hygiene and cleaning solutions to professional and industrial customers in Norway. In 2023, Lilleborg had a turnover of NOK 574 million and 124 employees. Founded in 1833 and a part of Orkla since 1986, Lilleborg operates from its main office in Oslo, a warehouse in Ski, and several regional offices across Norway.
About Solenis
Solenis is a leading global producer of specialty chemicals focused on delivering sustainable solutions for water-intensive industries, including consumer, industrial, institutional, food and beverage, and pool and spa water markets. Owned by Platinum Equity, the company is headquartered in Wilmington, Delaware. Solenis has 69 manufacturing facilities strategically located around the globe and employs a team of over 16,100 professionals in 130 countries across six continents.
About Orkla
Orkla is a leading industrial investment company with a focus on brands and consumer-oriented businesses. Its investment portfolio currently consists of 11 companies operating in sectors including paint, food products, chocolate, confectionery, snacks, health products and food ingredients. Orkla generated revenues of NOK 67.8 billion and a pre-tax profit of NOK 6.97 billion in 2023. As at year-end 2023, Orkla had 19,671 employees. Orkla is listed on the Oslo Stock Exchange and is headquartered in Oslo, Norway.
Orkla ASA
Oslo, 12 June 2024
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