Consumer goods supplier Orkla has agreed to acquire Zeelandia Sweden, a Swedish firm that produces margarine, vegetable oils and bakery ingredients.

Financial details of the deal have not been divulged, which is subject to the approval of Swedish competition authorities.

Upon completion of the transaction, Zeelandia Sweden’s name will be changed to Credin Sverige and will be part of the Credin Group.

Orkla executive vice-president and Orkla Food Ingredients CEO Johan Clarin said: “The acquisition of Zeelandia Sweden AB is strategically right for strengthening Orkla’s position and production capabilities in our Nordic home markets in categories with which Orkla Food Ingredients is very familiar.

“The acquisition of Zeelandia Sweden AB is strategically right for strengthening Orkla’s position and production capabilities in our Nordic home markets.”

“Their product portfolio makes a good fit with the Credin Group.”

Currently owned by Dutch company Koninklijke Zeelandia Groep, Zeelandia Sweden sells its products to the bakery industry.

Zeelandia Sweden’s production facilities and headquarters are located in Stenkullen, Sweden. It currently has around 60 employees. The company exports its products to Finland, the Baltics and Norway.

In 2018, Zeelandia Sweden had a turnover of €22.9m ($25.7m). The company is expected to be consolidated into Orkla’s financial statements in the second quarter of this year.

Last month, Orkla signed an agreement to purchase Swedish firm Lecora.

Established in 1963, Lecora is a family owned company engaged in the production of frozen and chilled vegan and vegetarian dishes. It also offers ready meals and schnitzel.