Norway's Orkla ASA said Aug. 22 that it agreed to acquire 20% of Icelandic chocolate and confectionery manufacturer Nói Síríus HF to boost its presence in Iceland.
Financial terms of the deal were not disclosed, but according to Orkla, Nói Siríus had a turnover of 3.44 billion Icelandic kronur in 2018. The company was established in 1920 and employs about 150 people.
Under the deal, Orkla has the option to purchase the remaining shares in Nói Siríus after 2020. The transaction is subject to the approval of the Icelandic competition authorities.
Through the investment, Orkla plans to leverage both companies' strengths across markets and expand its position in Iceland.
"Nói Siríus holds a unique position in Iceland and is a good fit with Orkla's portfolio of leading brands. Chocolate, snacks and confectionery are showing good growth and are core categories for Orkla," Executive Vice President and Orkla Confectionery & Snacks CEO Jeanette Hauan Fladby said in a statement.
The company already has a presence in Iceland through its partly owned company Dragsbæk A/S, part of the Orkla Food Ingredients business. Orkla also sells its brands such as Toro, Grandiosa, KiMs, OLW and Jordan through distributors.
Following the transaction, Orkla said Nói Siríus will continue to be led by its managing director Finnur Geirsson. Nói Siríus' head office, production plants and warehouse facilities are all located in the Icelandic capital of Reykjavik.
As of Aug. 22, US$1 was equivalent to 124.88 Icelandic kronur.
