Oslo / NO. (ok) Orkla Foods Europe, part of Norway’s Orkla ASA, has entered into an agreement to purchase 100 per cent of the shares in Khell-Food Kft., the largest producer of ready-made sandwiches and baguettes in the Hungarian market.
Khell-Food was established in 1992 and distributes nationwide from a modern production facility outside Budapest. The company has a leading market position, and the products are mainly sold under the company’s own brand.
«We have achieved success in corresponding categories in the Czech Republic and Slovakia and will continue to build on this experience. This acquisition is also in line with Orkla’s strategy to grow within the Out of Home channels,» says Paul Jordahl, CEO of Orkla Foods Europe.
The purchase of Khell-Food will be carried out by Orkla Foods Česko a Slovensko (CaS), which is part of Orkla Foods Europe. CaS is already established in the Hungarian market through its subsidiary Hamé Hungary.
The seller is the founder Zoltán Kelényi, who will continue as CEO of the company. Khell-Food has experienced 11 percent annual sales growth from 2017 to 2021, and in 2021 had a turnover of around NOK 85 million based on the current exchange rate.
The agreement will now be filed with the relevant Hungarian authorities and is expected to close during the first quarter 2023. The parties have agreed not to disclose the purchase price.