Orkla to acquire majority stake of Greek confectionery, bakery and ice-cream firm
The business was established in 1985 by Stelios Kanakis, MD, who will continue to serve in that position. The founder and his family own approximately 86% of the shares.
Good growth
The company has 73 employees and had a turnover of €20.2m in 2018.
Orkla Food Ingredients has entered into an agreement to acquire 65.8% from Stelios and Maria Kanakis at a purchase price per share of €4.35.
Johan Clarin, executive VP, Orkla and CEO, Orkla Food Ingredients, said Kanakis has a strong position in its core categories, plus a broad-based network of customers and suppliers.
“The company is well-positioned in a region that is seeing good growth,” he said.
“Orkla is impressed by the company that Stelios and his family has built over the years and we are looking forward to working with the family and to continue building the company together in the future.”
Completion of the share purchase agreement and the tender offer are subject to Orkla acquiring 4.18% of the shares in Kanakis from minority shareholders following announcement of the tender offer.
80% of the company
If Orkla attains an ownership interest of over 90% in Kanakis, a squeeze-out process will be implemented and the company will be delisted.
At the same time, 20% of the shares will be sold back to the Kanakis family at the same price as in the voluntary tender offer, meaning the family will own 20% and Orkla 80% of the company.
The company is expected to be consolidated into Orkla’s financial statements in the second quarter of 2019.
