Orkla has agreed to divest its confectionery producer OJSC Orkla Brands Russia to Slavyanka-Lyuks JSC, a member of the Russian confectionery group Slavyanka.
The agreement signed will require the company to sell 100% of its shares in Orkla Brands Russia. It is, however, subject to approval by the Russian competition authorities.
Established through the merger of SladCo and Krupskaya, Orkla Brands Russia has production plants in Peterhof outside St. Petersburg, Yekaterinburg and Ulyanovsk.
Orkla Brands Russia offers a wide range of confectionery products such as chocolates, sweets, caramel, biscuits, and wafers, under local brands including Krupskaya, SladCo and Pekar.
It generated around RUB 6,114m ($121.5m) in net sales during the year 2013 and had 2,225 employees, as of year-end 2013.
Commenting on the transaction, Orkla president and CEO Peter A. Ruzicka said: "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."
Image: Orkla president and CEO Peter A. Ruzicka. Photo: courtesy of Orkla ASA.
