Orkla Foods Romania, a branch of the Norwegian giant, whose turnover stands at 4 billion euros, has acquired the majority stake in Ardealul pate producer Prod. Ardealul Covasna, which ranks second on the canned pate and meat market.
"This acquisition is in line with our company's long-term expansion policy," said Knut Johannessen, Orkla Foods International CEO.
"Ardealul is a successful business in a sector that is of interest to Orkla", said Aliz Kosza, the general executive manager of Orkla Foods Romania.
Prod. Ardealul was developed by two local businessmen, Ovidiu Costea and Staicu Olteanu and last year had total revenues of 10 million euros. The company has 200 employees.
Orkla officials gave no details as to the value of the deal, though meat market sources put it at 5-6 million euros.
Orkla Foods Romania began talks for the takeover of Prod. Ardealul late last summer, although at that time officials from both companies maintained they were not in talks for a possible deal.
Orkla Foods Romania entered the pate market late last year, but carries out its production through a small producer.
Prod. Ardealul entered the market 11 years ago. "We practically built the company from scratch and are proud of it and its people", said Ovidiu Costea, one of the two associates. "Orkla will add value to Ardealul, developing both the company and its brand", added Staicu Olteanu.
After the deal, Orkla Foods will keep on the company's staff, including keeping the management team unchanged.
Orkla Foods Romania is in the process of expanding, both on the Romanian market and on East European and Baltic markets, where it has acquired a number of local brands and production facilities.
Two years ago the company took over the margarine, ketchup and mayonnaise division from Topway Craiova and in the middle of last year bought
