Norsk Hydro ASA and Orkla ASA are combining their profiles, building systems and tubing business to create a world leader in aluminium solutions called Sapa. This joint venture will be 50/50 owned by the two companies. It consists of the current offering of Orkla’s fully-owned Sapa and Hydro’s Extruded Products business area. Orkla will also be compensated 1.8 billion to account for size difference of the units. The combined entity had a turnover of around 47 billion NOK, underlying EBITDA of 1.9 billion and some 25 000 employees based on 2011 figures.
The combination requires approval from competition authorities; new company will be a market leader in Europe and North America in addition to its presence in emerging markets. Completion of the transaction is expected in H1 2013. The parties feel that the new company will be better positioned to restructure the business and expects 1 billion NOK in annual synergies.
Showing posts with label Orkla. Show all posts
Showing posts with label Orkla. Show all posts
Monday, 15 October 2012
Sunday, 22 July 2012
Orkla continues on its path
Orkla’s (OSE: ORK) management works towards transforming the company to a more focused entity as a pure branded goods company. The acquisition of Jordan, reduced shareholding in Renewable Energy Corporation ASA (OSE: REC) and overall reduction in share portfolio and divestment of Borregaard are just a few ongoing measures towards that end. Meanwhile numerous challenges remain as we enter a seasonally weaker third quarter on the heels of a mixed second quarter where Nordic Branded Consumer Goods performed acceptably but contract manufacturing lessened.
Second quarter operating revenues fell by 5% to 15 145 million NOK. Earnings before tax came in a considerable better at 541 million since loss from associates fell clearly and operating cash flow of 679 million also improve vs. last year. Sequentially all of the numbers are condirable weaker. Raw material prices remain high. The measures taken have greatly reduced interest bearing liabilities in the last several years although so far this year that trend has not continued.
Another recent acquisition is that of Boyfood Oy in Finland, Finland’s leading herring product maker known for its BOY-silli brand. It was acquired by Orkla’s subsidiary Felix Abba from Icelandic company Fram Foods ehf. for 9.6 million Euros on debt-free basis. Boyfood’s 2011 sales reached around 18 million Euros and it employs 56 people in Rymättylä. This makes Felix Abba a clear market leader in Finnish herring market with strong ABBA, AHTI, VESTA and BOY brands.
Second quarter operating revenues fell by 5% to 15 145 million NOK. Earnings before tax came in a considerable better at 541 million since loss from associates fell clearly and operating cash flow of 679 million also improve vs. last year. Sequentially all of the numbers are condirable weaker. Raw material prices remain high. The measures taken have greatly reduced interest bearing liabilities in the last several years although so far this year that trend has not continued.
Another recent acquisition is that of Boyfood Oy in Finland, Finland’s leading herring product maker known for its BOY-silli brand. It was acquired by Orkla’s subsidiary Felix Abba from Icelandic company Fram Foods ehf. for 9.6 million Euros on debt-free basis. Boyfood’s 2011 sales reached around 18 million Euros and it employs 56 people in Rymättylä. This makes Felix Abba a clear market leader in Finnish herring market with strong ABBA, AHTI, VESTA and BOY brands.
Friday, 22 June 2012
Orkla buys Jordan
Orkla ASA (OSE: ORK) has entered into an agreement to acquire 100% of the shares Jordan
Personal & Home Care AS and Jordan House Care AS from family owned Jordan AS. Jorban is a branded consumer goods company in oral hygiene, cleaning and painting tools segments probably best known for its Jordan tooth brushes. The companies had sales of 900 million NOK, EBITA of 90 million and EBITDA of 120 million NOK last year made possible by 620 employees.
The purchase price is 1.18 billion NOK on a cash and debt-free basis. Jordan is a market leader in toothbrushes, toothpicks and dental floss (with its subsidiary Peri-dent being among world leaders in this product category) as well as painting tools in the Nordic region. In Norway it also holds that position in dishwashing brushes and microfiber cloths. Its painting tools brands include Anza, Spekter and Hamilton. Orkla aims to further grow Jordan’s business.
The purchase price is 1.18 billion NOK on a cash and debt-free basis. Jordan is a market leader in toothbrushes, toothpicks and dental floss (with its subsidiary Peri-dent being among world leaders in this product category) as well as painting tools in the Nordic region. In Norway it also holds that position in dishwashing brushes and microfiber cloths. Its painting tools brands include Anza, Spekter and Hamilton. Orkla aims to further grow Jordan’s business.
Monday, 30 April 2012
Orkla reports preliminary figures, Wigren out
Bjørn M. Wiggen is out as President & CEO of Orkla ASA (OSE: ORK). The company chose to make it public now, coupled with the preliminary accounting figures, as local media broke the news on Saturday. He will be replaced by the Deputy Chair of the Board, Åge Korsvold, who takes over as Acting President & CEO. The decision stems from disagreements between Mr. Wiggen and the Board ”as regards ways of working”
Preliminary figures show operating revenues of 14.8 billion, down from 15 billion in Q1 2011, EBITA of 888 million and profit before tax of 1.55 billion. Diluted earnings per share are down to 1.3 where as cash flow from operations is slightly positive. The full reports will be out as scheduled on Thursday. The share is unchanged for the day.
Preliminary figures show operating revenues of 14.8 billion, down from 15 billion in Q1 2011, EBITA of 888 million and profit before tax of 1.55 billion. Diluted earnings per share are down to 1.3 where as cash flow from operations is slightly positive. The full reports will be out as scheduled on Thursday. The share is unchanged for the day.
Tuesday, 7 February 2012
FT: Orkla and Lerøy Seafood interested in Findus
Financial Times is reporting that Lion Capital is in advanced taks to sell Nordic operations of the frozen food maker Findus. FT lists Nestle, Orkla ASA (OSE: ORK) and Lerøy Seafood Group ASA (OSE: LSG) as the three most likely candidates. Already back in November FT mentioned that Lion Capital was planning such a move. Both Orkla and Lerøy Seafood finished the day in the red.
Findus is the market leader in frozen ready meals, fish and vegetables segments in Sweden, Finland and Norway. Findus brand originated in Sweden and the Nordic operations contribute a significant portion (roughly half a billion Euros per annum) into its revenues. A deal could value the operations between 700-800 million. The article, which requires registration, is available from here.
Findus is the market leader in frozen ready meals, fish and vegetables segments in Sweden, Finland and Norway. Findus brand originated in Sweden and the Nordic operations contribute a significant portion (roughly half a billion Euros per annum) into its revenues. A deal could value the operations between 700-800 million. The article, which requires registration, is available from here.
Thursday, 12 January 2012
Schibsted aims to grow online offering, moves to acquire Aspiro
Norwegian media conglomerate Schibsted ASA (OSE: SCH) surprised the markets with an all-cash offer for the shares of Swedish TV and music streaming services provider Aspiro AB(STO: ASP). Schibsted was already a major owner of Aspiro with nearly a 20% holding in the company. Currently the largest shareholder SEB Enskilda AS (STO: SEB A, SEB C)and other major owners Platekompaniet AS and Orkla ASA (OSE: ORK) have expressed that they are positive to the offer. These three companies together hold around 32.4% of the shares.
Aspiro offers TV and music streaming services to companies wanting to put their own branding on these services and also offers WiMP music service directly to consumers in selected markets. Aspiro’s net sales in 2010 were 185 million SEK and operating profit -114 million. The corresponding numbers for continuing operations were 159 million and -33 million as 2010 saw the divestments of former core-business area of ringtone vendorship as well as mobile games, images and graphics.
Aspiro has been making losses for quite some time but the balance sheet has is still fairly healthy. It has offices in Sweden, Denmark, Latvia and Estonia, employes around 120 people, and serves customers in over 20 countries worldwide. Schibsted sees Aspiro’s online offering and digital content welcome additions as the company is working on ways to monetize its digital media content.
The deal is subject to customary provisions and values the company at around 340 million SEK. Schibsted and Aspiro’s board feel that the company may grow better as a part of a larger unit. One aim would be to grow WiMP music service to rival Spotify. Aspiro is now trading close to the offer price up by some 32%. Schibsted, for which the deal is rather small in value, is also up by around 2%.
Aspiro offers TV and music streaming services to companies wanting to put their own branding on these services and also offers WiMP music service directly to consumers in selected markets. Aspiro’s net sales in 2010 were 185 million SEK and operating profit -114 million. The corresponding numbers for continuing operations were 159 million and -33 million as 2010 saw the divestments of former core-business area of ringtone vendorship as well as mobile games, images and graphics.
Aspiro has been making losses for quite some time but the balance sheet has is still fairly healthy. It has offices in Sweden, Denmark, Latvia and Estonia, employes around 120 people, and serves customers in over 20 countries worldwide. Schibsted sees Aspiro’s online offering and digital content welcome additions as the company is working on ways to monetize its digital media content.
The deal is subject to customary provisions and values the company at around 340 million SEK. Schibsted and Aspiro’s board feel that the company may grow better as a part of a larger unit. One aim would be to grow WiMP music service to rival Spotify. Aspiro is now trading close to the offer price up by some 32%. Schibsted, for which the deal is rather small in value, is also up by around 2%.
Friday, 9 December 2011
Plenty of Renewable Energy Corporation shares up for grabs for the wicked
Pareto Securities acting as the sole manager and bookrunner will attempt to sell between 40 and 95 million shares in Renewable Energy Corporation (4-9.5% of the share capital on REC) before the market opens in the morning.
The timing of the sale comes on the heels of REC’s participation in the Goldman Sachs Clean Energy Conference in New York. It may however prove unfortunate given the disappointing news from the Eurozone, which may cause considerable turmoil at market open tomorrow. Renewable Energy Corporation has also been suffering from weak performance of production facilities in Norway and is planning to shut down capacity. Recently dark clouds have gathered also in REC Silicon, which has been able to subsidize other company divisions with good profits and cash flow. REC share price is currently near all-time lows.
As far as potential sellers goes, Orkla ASA (OSE: ORK), owner of nearly 40% of shares made it clear few months ago, that they aim to divest their holdings in 2012. The second largest owner Hafslund ASA, (OSE: HNA), which currently holds a little less than 9% of shares has previously sold some of its REC holdings. There may be more than one party attempting to sell.
***Update:*** a little under 70 million shares were sold at 3.4 NOK per share. Shortly after the trade Hafslund flagged it had sold those shares and now has under 2% left. REC is down over 10% to 3.2 NOK in early trading. Later during the day, Hafslund also found buyers for the remaining 19 million shares. Plenty of different institutional investors bought shares.
The timing of the sale comes on the heels of REC’s participation in the Goldman Sachs Clean Energy Conference in New York. It may however prove unfortunate given the disappointing news from the Eurozone, which may cause considerable turmoil at market open tomorrow. Renewable Energy Corporation has also been suffering from weak performance of production facilities in Norway and is planning to shut down capacity. Recently dark clouds have gathered also in REC Silicon, which has been able to subsidize other company divisions with good profits and cash flow. REC share price is currently near all-time lows.
As far as potential sellers goes, Orkla ASA (OSE: ORK), owner of nearly 40% of shares made it clear few months ago, that they aim to divest their holdings in 2012. The second largest owner Hafslund ASA, (OSE: HNA), which currently holds a little less than 9% of shares has previously sold some of its REC holdings. There may be more than one party attempting to sell.
***Update:*** a little under 70 million shares were sold at 3.4 NOK per share. Shortly after the trade Hafslund flagged it had sold those shares and now has under 2% left. REC is down over 10% to 3.2 NOK in early trading. Later during the day, Hafslund also found buyers for the remaining 19 million shares. Plenty of different institutional investors bought shares.
Tuesday, 6 December 2011
Nordic Stocks news in brief from 05.12.2011
Financial Times says that S&P is about to have all AAA-rated Euro countries on negative creditwatch. Finland is among those precious few countries still enjoying low borrowing costs in the eurozone.
According to an article in the Wall Street Journal, Hennes & Mauritz is planning to forge ahead aggressively in China. H&M plans to move onto second tier and even smaller cities as the purchasing power of the rising middle cls in China increases. The article also talks about important nuances concerning H%M’s dealings in China.
Orkla ASA (OSE: ORK) notified in the after the trading session that it has sold its entire holding of 23 million shares in reverse vending machines firm Tomra Systems (OSE: TOM), representing 15.5% of the total share capital of Tomra, to Latour Investment AB (STO: LATO B). The price per share was 38.5 NOK. Tomra Systems closed at 40 NOK per share on Monday.
Financially troubled home decoration retailer Tiimari (HEL: TII1V)warned its Gallerix businesses’ revenue in Sweden was lower than forecasted in November and subsequently lowered Tiimari segments full-year EBITDA guidance from lower than last year to significantly lower than last year (and still obviously negative). Gallerix business unit has been the lone unit of the group posting positive results since Tiimari acquired it in 2007. Now it may post a loss for the year.
Swedish internet publication DagensHandel.se interviewed Gallerix’s CEO on Monday and he said that Tiimari has been gauging interest for the sale of the company. The CEO Dan Crewe said that synerge benefits in between the companies have proven smaller than expected. Selling right after the company posts a loss on the cheap would certainly be a logical continuation in Tiimari’s continued destruction of shareholder value.
Pandora (CPH: PNDORA) and D/S Norden (CPH:DNORD) will be replaced by AP Moller-Maersk A/S A-shares (CPH:MAERSK A) and Nordea ((OMX: NDA SEK) (OMXH: NDA1V) (OMX: NDA DKK)) in OMX Copenhagen 20 index (20 most traded companies in Copenhagen exchange) as a part of the semi-annual review on 19th of December. After that the index will be consisted of the following stocks: Carlsberg B, Chr. Hansen, Coloplast B, Danske Bank, DSV, FLSmidth, GN Store Nord, Lundbeck, Mærsk A, Mærsk B, NKT, Nordea, Novo Nordisk, Novozymes, Sydbank, TDC, Topdanmark, Tryg, Vestas and William Demant.
AstraZeneca (LSE: AZN, OMXS: AZN, NYSE: AZN) and UK’s Medical Research Council (MRC) have struck an agreement granting UK academics access to 22 compounds developed by AstraZeneca.
According to an article in the Wall Street Journal, Hennes & Mauritz is planning to forge ahead aggressively in China. H&M plans to move onto second tier and even smaller cities as the purchasing power of the rising middle cls in China increases. The article also talks about important nuances concerning H%M’s dealings in China.
Orkla ASA (OSE: ORK) notified in the after the trading session that it has sold its entire holding of 23 million shares in reverse vending machines firm Tomra Systems (OSE: TOM), representing 15.5% of the total share capital of Tomra, to Latour Investment AB (STO: LATO B). The price per share was 38.5 NOK. Tomra Systems closed at 40 NOK per share on Monday.
Financially troubled home decoration retailer Tiimari (HEL: TII1V)warned its Gallerix businesses’ revenue in Sweden was lower than forecasted in November and subsequently lowered Tiimari segments full-year EBITDA guidance from lower than last year to significantly lower than last year (and still obviously negative). Gallerix business unit has been the lone unit of the group posting positive results since Tiimari acquired it in 2007. Now it may post a loss for the year.
Swedish internet publication DagensHandel.se interviewed Gallerix’s CEO on Monday and he said that Tiimari has been gauging interest for the sale of the company. The CEO Dan Crewe said that synerge benefits in between the companies have proven smaller than expected. Selling right after the company posts a loss on the cheap would certainly be a logical continuation in Tiimari’s continued destruction of shareholder value.
Pandora (CPH: PNDORA) and D/S Norden (CPH:DNORD) will be replaced by AP Moller-Maersk A/S A-shares (CPH:MAERSK A) and Nordea ((OMX: NDA SEK) (OMXH: NDA1V) (OMX: NDA DKK)) in OMX Copenhagen 20 index (20 most traded companies in Copenhagen exchange) as a part of the semi-annual review on 19th of December. After that the index will be consisted of the following stocks: Carlsberg B, Chr. Hansen, Coloplast B, Danske Bank, DSV, FLSmidth, GN Store Nord, Lundbeck, Mærsk A, Mærsk B, NKT, Nordea, Novo Nordisk, Novozymes, Sydbank, TDC, Topdanmark, Tryg, Vestas and William Demant.
AstraZeneca (LSE: AZN, OMXS: AZN, NYSE: AZN) and UK’s Medical Research Council (MRC) have struck an agreement granting UK academics access to 22 compounds developed by AstraZeneca.
Friday, 22 July 2011
Tele2 to buy Network Norway, set to net half a million customers
Tele2 AB (OMX: TEL2 B) announced it has agreed to buy the majority of shares in Network Norway from Orkla ASA (OSE: ORK) , Hafslund Venture II AS, an investment arm of Hafslund AS (OSE: HNA), and Katalysator Telekom AS. Tele2 will pay around 890 million Swedish kronor for Network Norway shares and warrants held by the three companies, valuing 100 percent of network Norway in the vicinity of 1 700 million on a cash and debt free basis.
Tele2 will make an offer to remaining shareholders on similar terms. In 2007 Network Norway released its own mobile network and established a joint venture mobile network company with Tele2. Network Norway has total mobile customer base approaching 500 000, which will raise Tele2’s customer base in Norway to over 1 million. Tele2 plans to aggressively challenge the local mobile network incumbents Telenor (OSE: TEL) and NetCom.
Network Norway reported revenues of approximately 2 billion and an EBIDA of 22 million for 2010. The acquisition is conditional on regulatory approval and acceptance of the offer from over 90 percent of total outstanding shares in Network Norway.
Tele2 will make an offer to remaining shareholders on similar terms. In 2007 Network Norway released its own mobile network and established a joint venture mobile network company with Tele2. Network Norway has total mobile customer base approaching 500 000, which will raise Tele2’s customer base in Norway to over 1 million. Tele2 plans to aggressively challenge the local mobile network incumbents Telenor (OSE: TEL) and NetCom.
Network Norway reported revenues of approximately 2 billion and an EBIDA of 22 million for 2010. The acquisition is conditional on regulatory approval and acceptance of the offer from over 90 percent of total outstanding shares in Network Norway.
Wednesday, 20 July 2011
Comments regarding Orkla's second quarter of 2011
Industrial conglomerate Orkla Group’s (OSE: ORK) quarterly numbers were weighed down by the recent share price decline in Renewable Energy Corporation (OSE: REC) and thus diluted earnings per share were minus 2.6 NOK. For such a wide reaching company like Orkla, obviously there are sectors performing better and worse. It just so happens that REC’s share was up more than 20% today on the heels of a 10% advance yesterday.
As far as group companies are concerned, Swedish extruded aluminium profiles manufacturer Sapa AB continued to show profit growth and Norwegian biorefinery firm Borregaard experienced strong markets. Orkla’s hydropower business returned to normalcy. The sale of Elkem to China National Bluestar Group Co this January still affects comparisons. Orkla got the 12.8 billion NOK receivable from Bluestar during Q2.
Development In branded consumer goods division Orkla Brands was affected by higher raw material prices. There is typically lag before the company is able to pass on those costs to end-user (supply contract lenght issue). Profit was therefore lower for the division than in corresponding quarter of 2010. Orkla says that price rises will be implemented in second half of 2011. Results for Orkla Brands Russia and Bakers were weak. Orkla said last March, that it is planning to sell Bakers, which is Norway’s leading bakery company. The process is still ongoing.
Orkla is guiding for continued high volatility in raw material prices. The company says restructuring of Russian operations will contribute positively. Sapa expects slower growth than in the first half of the year going forward and Borregaard still has favourable market conditions. Second half normally has seasonally lower activity for Orkla companies as a whole. Orkla was up 2% today. Orkla’s full interim report is available here.
As far as group companies are concerned, Swedish extruded aluminium profiles manufacturer Sapa AB continued to show profit growth and Norwegian biorefinery firm Borregaard experienced strong markets. Orkla’s hydropower business returned to normalcy. The sale of Elkem to China National Bluestar Group Co this January still affects comparisons. Orkla got the 12.8 billion NOK receivable from Bluestar during Q2.
Development In branded consumer goods division Orkla Brands was affected by higher raw material prices. There is typically lag before the company is able to pass on those costs to end-user (supply contract lenght issue). Profit was therefore lower for the division than in corresponding quarter of 2010. Orkla says that price rises will be implemented in second half of 2011. Results for Orkla Brands Russia and Bakers were weak. Orkla said last March, that it is planning to sell Bakers, which is Norway’s leading bakery company. The process is still ongoing.
Orkla is guiding for continued high volatility in raw material prices. The company says restructuring of Russian operations will contribute positively. Sapa expects slower growth than in the first half of the year going forward and Borregaard still has favourable market conditions. Second half normally has seasonally lower activity for Orkla companies as a whole. Orkla was up 2% today. Orkla’s full interim report is available here.
Subscribe to:
Posts (Atom)