Orkla divests skin care business in Poland

Orkla Care Poland has entered into an agreement to sell the company’s skin care business in Poland. The purpose of the divestment is to streamline the portfolio and concentrate Orkla’s Polish operations on the health, wound care, cleaning product and personal care product categories.

The agreement covers the Soraya and Dermika brands, 145 employees, and the production facilities in Radzymin including production equipment.

The buyer is Bielenda Kosmetyki Naturalne Sp. z o. o. Spółka Komandytowa (“Bielenda”). Bielenda is a family-owned manufacturer and supplier of branded beauty and skin care products. The business, established in 1990, is now one of the leading suppliers of branded skin care products to professionals and the grocery market in Poland. Bielenda has teamed up on this acquisition with the Polish fund Innova Capital.

Orkla’s Polish skin care business became part of Orkla Care Poland through the acquisition of Cederroth in 2015. Orkla’s net revenues from the business now being divested totalled PLN 56 million (NOK~144 million) in 2019.

“Soraya and Dermika are well-known skin care brands and are recognised by Polish consumers for their quality and innovation. We’re glad that the business will continue to operate under the ownership of Bielenda, whose core business is beauty and skin care. This sale will contribute to a more focused and robust Orkla Care Poland,” says Atle Vidar Nagel Johansen, CEO of Orkla Care.

The agreement is subject to the approval of the Polish competition authorities and is expected to take effect at the turn of the year 2020/2021. The parties have agreed not to disclose the price.

Orkla is a leading supplier of branded consumer goods and concept solutions to the consumer, out-of-home and bakery markets in the Nordics, Baltics and selected markets in Central Europe and India. Orkla is listed on the Oslo Stock Exchange and its headquarters is in Oslo. In 2019, the Group had a turnover of NOK 43.6 billion, and approximately 18,500 employees as of 31 December 2019.

Orkla ASA

Oslo, 4 November 2020

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