Norwegian consumer goods conglomerate Orkla is offering to buy the Finnish-owned Kotipizza Group for 23 euros per share.
Norway’s Orkla has made an offer to buy the Kotipizza Group, which includes the Kotipizza chain of franchise pizza joints, for what amounts to just over 146 million euros in cash. The board of Kotipizza Group has unanimously recommended that the company accept the takeover bid, and over 32 percent of the shareholders in the enterprise have approved of the deal under certain terms and conditions.
Orkla is a leading supplier of branded consumer goods to the grocery, retail, pharmacy and bakery sectors. It owns well-known food brands sold in Finland such as Abba, Ahti, Boy and Taffel.
Kotipizza Group CEO Tommi Tervanen said he is confident that Orkla will be able to give support and provide possibilities for the future growth of the Kotipizza chain.
“Together the two companies will be a good position to respond to changing consumption habits. I am looking forward to being a part of this journey,” Tervanen said in a 22 November press release.
Orkla’s CEO Peter A. Ruzicka said that for the Norwegian company’s part, the purchase will be a good extension of its development plans.
“The acquisition of Kotipizza is in line with our strategic goals, which are to strengthen our presence in fields with larger growth than the traditional food trade,” he said.
Largest pizza chain in the Nordics
Vaasa resident Rabbe Grönblom founded the Kotipizza franchise in 1987. Since then the Finnish chain has expanded to become the largest of its kind in the Nordic countries, with 270 locations employing 1,700 people. In 2017, sales accounted for over 106 million euros.
Kotipizza Group consists of four companies: Kotipizza, the Chalupa Mexican food franchise, and The Social Burger Joint. The fourth group company, Helsinki Foodstock, provides food-related supply, logistics and selection services for a number of companies.