Orchard Valley Foods bought by Orkla Food Ingredients

By Matt Atherton

- Last updated on GMT

Orchard Valley Foods was bought by Orkla Food Ingredients
Orchard Valley Foods was bought by Orkla Food Ingredients

Related tags Ice cream Cake

Confectionery firm Orchard Valley Foods has been bought by Norwegian bakery ingredients manufacturer Orkla Food Ingredients, for an undisclosed fee.

Orkla Food Ingredients signed a deal to buy 85% of Orchard Valley Foods’s shares. The agreement, revealed today (April 3), also included an option to buy the remaining 15% of the business.

The Norwegian manufacturer said the deal would strengthen its position in the UK ice cream ingredients sector. It would also help to boost exports, it added.

Orkla Food Ingredients ceo Pål Eikeland said: “Orchard Valley Foods and Orkla Food Ingredients are a good fit. The acquisition of Orchard Valley complements Orkla’s current position in the UK ice cream ingredients and accessories segment.

‘Potential for increased exports’

“It also strengthens our position in categories that are well known to Orkla Food Ingredients. This acquisition offers potential for increased exports and synergies with our present operations.”

Tenbury Wells-based Orchard Valley Foods produces confectionery and decorations for desserts, ice creams, cakes, muffins, doughnuts, cookies and beverages. Most of its turnover was generated in the UK, but it was also increasing its European exports, Orkla said.

In its latest full-year trading update, Orchard Valley Foods reported a turnover of £23.9M, and normalised earnings before interest, tax, depreciation and amortisation of £2M.

Orkla Food Ingredients

Orkla Food Ingredients is a bakery ingredients business, which supplies the Nordic region, as well as holding market positions in Europe. The manufacturer owns sales and distribution companies in 22 countries.

Its biggest product categories are bread and cake mixes, marzipan and ice cream ingredients, yeast, and margarine and butter blends.

Orkla – owner of Orkla Food Ingredients – reported a turnover of £3.5bn (NOK 38bn) in its latest trading update. It has around 18,000 employees.

Meanwhile, Lancashire-based bakery ingredients maker James Fleming & Co was bought by Dutch firm Zeelandia​ in December. The deal would allow Zeelandia to expand its bakery fillings offer and grow its customer base in the UK, it said.

Orkla Food Ingredients buys Orchard Valley Foods – at a glance

  • Orkla Food Ingredients buys 85% of Orcahrd Valley Foods’s shares
  • Option to buy remaining 15%
  • Deal would strengthen Orkla Foods’s UK position, and boost exports

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