Orkla to divest Delecta to Innova Capital

Norwegian industrial conglomerate Orkla has signed an agreement to sell Rieber Foods Polska (Delecta) to an investment fund managed by Innova Capital for PLN100m ($32.6m).

As part of the agreement, Orkla will divest 100% of its shares in Delecta to Innova Capital.

Delecta is a leading producer of branded cake mixes and desserts in Poland, and it reported net sales of around PLN149m ($46.2m) in 2013.

The company had 341 employees, as of year end 2013.

Orkla gained control of Delecta in April 2013, when it completed the acquisition of food firm Rieber & Søn.

In August 2012, Orkla entered into an agreement with the Rieber family to acquire a 90.11% stake in food firm Rieber & Søn, in a deal that valued the company at NOK6.1bn ($1.02bn) on a debt-free basis.

Orkla executive vice president and Orkla International CEO Paul Jordahl said that Delecta has delivered a positive improvement in financial performance under Orkla’s ownership and has good prospects for the future.

"At the same time, we think that other owners are better positioned to further develop the company’s operations in Poland," Jordahl added.

"The transaction only encompasses Delecta, and we remain fully committed to our Orkla Home & Personal and Orkla Food Ingredients businesses in Poland."

The agreement is subject to the approval of the Polish competition authorities.

Lazard and Raiffeisen Centrobank acted as financial advisors to Orkla in this deal.