Orkla to acquire stake in Iceland’s chocolate brand Nói-Siríus

Orkla, a supplier of branded consumer goods, has signed an agreement to acquire a 20% stake in Icelandic chocolate and confectionery manufacturer Nói-Siríus.

Financial details of the acquisition have not been divulged.

Nói Siríus operates production plants and warehouse facilities in Reykjavik and is currently owned by several private investors.

The company’s portfolio includes a number of Icelandic chocolate bars, such as Síríus, Nóa Konfekt, Nóa Kropp, Nóa Páskaegg and Konsum.

Nói Siríus noted that more than 70% of the company’s revenue is generated through domestic markets sales.

Orkla executive vice-president and Orkla Confectionery & Snacks CEO Jeanette Hauan Fladby said: “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.

“We see a potential for creating value by utilising the companies’ strengths across markets, improving production efficiency and building on our position in Iceland, which is a growth market.”

The Icelandic firm also distributes global chocolate brands, snacks and breakfast products.

Currently, Orkla operates in Iceland through Dragsbæk, which is part of the Orkla Food Ingredients business segment.

The company also sells some of its own brands, including Toro, Grandiosa, KiMs, OLW and Jordan through distributors in Iceland.

Completion of the transaction is subject to the approval of Icelandic competition authorities.

Upon completion, Finnur Geirsson, who is currently serving as the Nói Siríus managing director, will continue to lead the company.

As per the terms of the agreement, Orkla has the option to acquire the remaining stake in the company after 2020.