June 22 (Bloomberg) -- Orkla ASA agreed to buy companies from Jordan AS, a maker of toothbrushes, as the Norwegian company expands its brand business.
The company will pay 1.18 billion kroner ($198 million) for Jordan Personal & Home Care AS and Jordan House Care AS on a cash and debt free basis, Oslo-based Orkla said today.
“Jordan is a company with long-standing traditions, and has strong brands that have established solid positions in their home markets,” Orkla President and Chief Executive Officer Aage Korsvold said in a statement. “This acquisition is fully in line with our strategy to expand in the branded consumer goods sector in the Nordic region.”
Chairman Stein Erik Hagen, a Norwegian billionaire, is pushing the company to sell non-consumer goods assets such as its 39.7 percent stake in Renewable Energy Corp. ASA. The brands business, which makes everything from Grandiosa frozen pizzas to Pierre Robert hosiery, has been expanding with acquisitions across the Nordic region.
Jordan, a family owned company based in Oslo, had sales of of 900 million kroner and operating profit before depreciation and writedowns of 120 million kroner last year. It had about 620 employees.
Orkla spent about 8.15 billion kroner between 2004 and 2010 on acquisitions larger than 100 million kroner, including the 3.1 billion-krone purchase of Finnish snack company Chips Oyj and the 928 million-krone takeover of Dansk Droge, a maker of vitamins and supplements.
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