Orkla has today signed a combination agreement to launch an offer to purchase all the shares in Kotipizza Group Oyj (“Kotipizza Group”), the owner of Finland’s largest chain for pizza restaurants.
Kotipizza Group is a leading player in the growing Finnish restaurant market, and Finland is one of Orkla’s home markets. The restaurants are mainly operated by franchisees.
“Kotipizza Group is a well-run company with competent management and a well-functioning franchise model. The acquisition of Kotipizza Group is in line with our strategic ambition to increase our presence in channels with faster growth than traditional grocery, and we see a good match between the two companies”, says Orkla President & CEO Peter A. Ruzicka.
Kotipizza Group is listed on Nasdaq Helsinki, and the offer concerns the purchase of all outstanding shares in the company. The offer price is EUR 23 per share (ca. NOK 224 per share), which values Kotipizza Group’s equity at approximately EUR 146.1 million (ca. NOK 1.4 billion). The Board of Directors of Kotipizza Group has unanimously decided to recommend the shareholders of Kotipizza Group to accept this offer.
Kotipizza Group is best known for the pizza restaurant chain Kotipizza, which was established in 1987. Since then, the chain has grown to 280 restaurants in Finland, of which all except one are franchise-operated.
In addition to the restaurant concepts, Kotipizza Group owns the purchasing and wholesale company Helsinki Foodstock Oy, which supplies ingredients to the Group’s own chains and Helsinki Foodstock’s external customers.
Kotipizza Group had total net sales of EUR 84.1 million (ca. NOK 789 million) in the financial year 2017 and EBIT of EUR 6.4 million (ca. NOK 60 million).
Kotipizza Group is headquartered in Helsinki, Finland and currently has 95 employees. The company’s management will remain in place after completion of the tender offer, and the business will be operated as an independent entity in Orkla.
The completion of the tender offer is subject to certain conditions, including, among others, approvals by the relevant regulatory authorities and Orkla gaining control of more than 90 per cent of the outstanding shares and votes in Kotipizza Group.
Source: Orkla / Norway Today