Orkla Foods Europe has entered into an agreement to purchase 100 per cent of the shares in Khell-Food Kft., the largest producer of ready-made sandwiches and baguettes in the Hungarian market.
Khell-Food was established in 1992 and distributes nationwide from a modern production facility outside Budapest. The company has a leading market position, and the products are mainly sold under the company’s own brand.
“We have achieved success in corresponding categories in the Czech Republic and Slovakia and will continue to build on this experience. This acquisition is also in line with Orkla’s strategy to grow within the Out of Home channels” says Paul Jordahl, CEO of Orkla Foods Europe.
The purchase of Khell-Food will be carried out by Orkla Foods Česko a Slovensko (CaS), which is part of Orkla Foods Europe. CaS is already established in the Hungarian market through its subsidiary Hamé Hungary.
The seller is the founder Zoltán Kelényi, who will continue as CEO of the company. Khell-Food has experienced 11 percent annual sales growth from 2017 to 2021, and in 2021 had a turnover of around NOK 85 million based on the current exchange rate.
The agreement will now be filed with the relevant Hungarian authorities and is expected to close during the first quarter 2023. The parties have agreed not to disclose the purchase price.
About Khell-Food
Khell Food has around 160 employees and operates from a modern production plant outside Budapest. The company has a nationwide refrigerated distribution network and sells its products through a variety of sales channels, the largest of which is petrol stations. Around 70 per cent of the company’s sales of ready-made products are sold under the Khell-Food brand.
About Orkla Foods Europe
Orkla is to be transformed into a leading industrial investment company with a brand and consumer-oriented scope. Effective from 1 March 2023 the former business area Orkla Foods Europe will be established as one of 12 portfolio companies. Orkla Foods Europe has NOK 17.3 billion in revenue1 and around 6,500 employees and operates in 10 countries.
1 Rolling twelve months as at Q3 2022.
Orkla ASA
Oslo, 16 December 2022
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