NAFED to contribute and promote ‘International Year of the Millet’ 2023 on global scale
Seeks a partner to further accelerate growth of its ingredients business
Orkla Food Ingredients (OFI) has entered into an agreement to purchase 84% of the shares in Denali Ingredients, which is a leading ice cream ingredients business in the US. The purchase price on a 100% and cash and debt free basis is $200 million, equivalent to NOK ~2.2 billion.
Denali Ingredients has seen strong organic growth of more than 10% p.a. over the past 15 years. The company is headquartered in Wisconsin, where it carries out manufacturing at two facilities and has 160 employees in total.
Denali Ingredients develops and manufactures ingredient solutions for the US ice cream industry, complementary with OFI’s strong position in the European market for ice cream and confectionery ingredients. The new business will be part of OFI’s Sweet Ingredients vertical.
Denali Ingredients is expected to have a total turnover of $99 million in the financial year 2022 (ending 30 September), equivalent to NOK ~1.1 billion, and run-rate normalised EBITDA of $14.4 million, equivalent to NOK 156 million.