Põltsamaa food processing plant sold to Svensky Kaubanduse OÜ
The process launched by Orkla Eesti last fall to find a new owner for the Põltsamaa factory and brand has concluded — Svensky Kaubanduse AS is the buyer.
In addition to the sale of the factory and the brand, the parties have agreed on a continued partnership, under which Orkla will continue to source various products, such as preserved vegetables, from Põltsamaa in the future.
The Põltsamaa factory will be handed over to its new owner at the end of April. According to the terms of the sale, production will continue at the site and all current employment contracts will be transferred.
"Our top priority was to find a buyer who would value the Põltsamaa brand and continue production — that wish has been fulfilled," said Kaido Kaare, head of Orkla Eesti.
"The buyer will take over the production complex, the brand, the products and the employees' contracts. We believe both the brand and the production will continue to grow robustly. In addition, we've agreed that the Põltsamaa factory will remain a supplier to Orkla," Kaare added.
"Põltsamaa is a strong and beloved Estonian brand with a long history and significant potential. Our goal is to develop both the production and the brand over the long term, relying on local expertise and the existing team," said Sven Voites, head of Svensky Kaubandus. "We see Põltsamaa as an important part of Svensky's future growth strategy," he added.
Last fall, Orkla Eesti made the decision to sell its Põltsamaa business and brand in order to ensure further growth and stability and to focus on its core strengths and strategic product groups. Orkla Eesti will continue to market popular brands such as Kalev, Taffel, Felix, Pai and Grandiosa.
Svensky is an Estonian company with over 30 years of experience in wholesale, production and logistics for both food and household goods. It represents well-known brands in the Estonian market, including S. Pellegrino, Marmiton, Zott, Fitaki, Käserei Champignon, Bosto and others.
The transaction was facilitated by PwC Tallinn as lead advisor and Ellex Legal as legal advisor on behalf of Orkla Eesti and by Redgate Capital, Tark Legal and BDO Estonia on behalf of Svensky Kaubandus. The deal is subject to approval by the Estonian Competition Authority.
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Editor: Aleksander Krjukov, Marcus Turovski
