Estonia, EU – Baltic States, Foodstuff, Markets and Companies, Mergers and take-overs

Norwegian corporation Orkla concluded a contract for buying the Kalev Chocolate Factory and its cookies and flour mix segments on May 4. The Estonian Competition Board granted its blessing to the deal at the end of last week, LETA/Äripäev.ee reports.

Orkla took over, via its Finnish company Felix Abba, 100% of Kalev Chocolate Factory shares, including the company’s plant in Jüri near Tallinn. The seller of the shares was holding company Luterma. The transaction does not concern companies not connected to the sweets industry. The cost of the deal is confidential.

Kalev Chocolate Factory annual sales turnover is around 28 million euros and the company has nearly 400 employees.

“Kalev as the most beloved Estonian brand is now a part of an international concern. Being a member of the Orkla group means better prospects for Kalev at foreign markets and access to the group’s know-how. At the same time, Orkla understands well the importance of local brands and consumption habits that allows Kalev to continue as an Estonian company,” said Kalev Chocolate Factory board chairman Mait Nilson.

“The transaction is an important step in expanding our confectionery sphere since it provides good growth prospects and creates a basis for expanding the confectionery industry sphere in Finland and the Baltic region,” said Orkla Foods Fenno-Baltic’s CEO Clas Göran Hagström.