Orkla has entered into an agreement to sell OJSC Orkla Brands Russia to Slavyanka-Lyuks JSC, a member of the Russian confectionery group Slavyanka. Under the agreement, Orkla will divest 100 per cent of its shares in Orkla Brands Russia.
Orkla Brands Russia is an established confectionery producer in Russia, with iconic local brands such as Krupskaya, SladCo and Pekar. The company was established in February 2011 through the merger of SladCo and Krupskaya, which have been part of Orkla since 2005 and 2006, respectively. Orkla Brands Russia has production plants in Peterhof outside St Petersburg, Yekaterinburg and Ulyanovsk. In 2013, the company’s net sales totalled RUB 6,114 million (NOK 1,129 million). As of year end 2013, the company had 2,225 employees.
Orkla communicated in Q1 2014 that a structural sales process had been initiated.
“Orkla has executed a comprehensive restructuring in Orkla Brands Russia over the last couple of years. The company is now well positioned for the future, but we believe that other owners are better positioned to further develop and support the company’s operations,” says Peter A Ruzicka, president and CEO of Orkla ASA.
The agreement is subject to approval by the Russian competition authorities.
Orkla’s Russian branded nuts company, Chaka, and separate real estate assets in St. Petersburg and Yekaterinburg are not part of this transaction. Separate sales processes have been commenced for the real estate assets.