Oslo / NO. (ok) Orkla ASA has entered into an agreement to invest in the Danish pizza restaurant chain Gorm’s. Gorm’s is market leader in the premium pizza restaurant segment in Denmark.
Orkla already leads the frozen pizza market in the Norwegian, Swedish and Finnish grocery sector, and the investment in Gorm’s will give Orkla a prominent position in a new sales channel with good growth. Gorm’s is a strong branded product with robust growth plans in the restaurant, take-away and catering segments in Denmark.
The business comprises nine self-owned restaurants in Copenhagen, Odense and Aarhus, as well as three franchise-operated restaurants. The company’s current management will remain in place after completion of the agreement. The restaurants will be operated as a separate entity under the Orkla Investments business area.
Through the agreement, Orkla will acquire a 67 percent interest in Gorm’s, with the opportunity to increase its stake to 100 percent ownership after an agreed period of time. Existing shareholders will have an aggregate interest of 33 percent. The business had a total turnover of DKK 48 million (NOK 62 million) for the financial year ending June 2017 and Ebitda of DKK 3 million (NOK 4 million). Gorm’s has around 170 employees, and the company’s headquarters is located outside Copenhagen, Denmark.
The company is expected to be consolidated into Orkla’s financial statements as from 1 April 2018.
