October 27, 2023

Global PE firm Rhône acquires a 40% stake in Orkla Food Ingredient, part of Norwegian good conglomerate Orkla (publ.), at an EV of NOK 15,500m - EV/EBIT of 14.1x

Press Release
Global PE firm Rhône Group acquires a 40% stake in Norwegian stock-listed food conglomerate Orkla's subsidiary Orkla Food Ingredients ('OFI'), which produces bakery-, sweets- and plant-based ingredients. The transaction implies an enterprise value of NOK 15.5bn. OFI reported sales of NOK 18.1bn for the 12 months ending 30 September 2023 with an adj. EBIT of NOK 1.1bn, implying an EV/EBIT of 14.09x (LTM). Rhône will have the option, exercisable through 31 March 2027, to acquire an additional 9% of OFI equity at the same price per share as this transaction. In connection with the transaction, BofA acted as financial adviser to Orkla, and Rothschild & Co acted as financial adviser to Rhône. NKP first exclusively covered Orkla Food Ingredients as a carve-out option on 24 October 2022, with multiple updates on the process on 6 June, 15 June, and 1 September 2023.
Transaction announcement
Originally surfaced by NKP | M&A Insights as:
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September 1, 2023

Update: BofA-guided sale of Orkla Food Ingredients reaches an advanced stage, acc. to several sources - strong H1-2023 financials show 16% organic growth (NKP Proprietary)

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NKP | M&A Insights Proprietary
Early coverage by NKP | M&A Insights (headline)
October 24, 2022

A sale is the main avenue being explored in relation to Orkla's recently announced intention to seek out partners for its Food Ingredients division, with an investment bank mandated, acc. to multiple sources (NKP Proprietary)

[log in to app.mainsights.io to read the full analysis as it was originally presented]
NKP | M&A Insights Proprietary
Early coverage by NKP | M&A Insights (headline)

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