Orkla has entered into an agreement to offload its Russian confectionery business to Slavyanka-Lyuks, a member of Russian confectionery group Slavyanka, for an undisclosed sum.
The unit, Orkla Brands Russia, was created in 2011 when Orkla merged its SladCo and Krupskaya businesses. It includes the Krupskaya, SladCo and Pekar brands as well as production plants in Peterhof, Yekaterinburg and Ulyanovsk. In 2013, net sales totalled RUB6.1bn (US$116.5m).
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“Orkla has executed a comprehensive restructuring in Orkla Brands Russia over the last couple of years. The company is now well positioned for the future, but we believe that other owners are better positioned to further develop and support the company’s operations,” said Peter Ruzicka, Orkla president and CEO.
Orkla’s Russian branded nuts company, Chaka, and separate real estate assets in St Petersburg and Yekaterinburg are not part of the transaction. Separate sales processes have commenced for the real estate assets.
The deal is subject to Russian competition approval.
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