Orkla partners with RhA'ne in deal to fuel growth for OFI.

M2 EQUITYBITES-October 26, 2023-Orkla partners with RhÃ'ne in deal to fuel growth for OFI

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Industrial investment company Orkla (OSE:ORK) and Rhône, a global private equity firm focusing on transatlantic businesses, announced on Thursday a strategic partnership.

Rhône-affiliated investment funds will acquire a 40% stake in Orkla Food Ingredients AS (OFI), valuing the enterprise at NOK15.5bn. The partnership aims to foster OFI's growth, leveraging Rhône's experience in the consumer and food sectors. They intend to enhance OFI's business through volume growth, margin improvements, capital efficiency, and structural growth.

OFI, founded by Orkla in 1999, has achieved significant growth, with sales of NOK18.1bn and an adj. EBIT of NOK1.1bn in the twelve months ending September 2023. The transaction will replace Orkla's financing with a NOK6.4bn bank facility, while OFI's balance sheet will include a...

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