European group eats up £24m-turnover food business

Food group Orchard Valley has been bought by a Norwegian group that already has a “robust position” in the ice cream ingredients and accessories segment in the UK.

Orkla Food Ingredients – which is part of Orkla, the group that paid £55m for paint brush manufacturer L G Harris last May – has acquired 85% of the Worcestershire business for an undisclosed sum. It also has an option to purchase the remaining 15%.

Orchard Valley was founded in 2004 and now employs 72 people at Tenbury Wells, where it has its head office and production facilities.

The company generated EBITDA – a measure of operational profitability – of £2.0m on sales of £23.9m in the year to May 2016.

“Orchard Valley and Orkla Food Ingredients are a good fit,” said Pål Eikeland, chief executive of Orkla Food Ingredients.

“The acquisition of Orchard Valley complements Orkla’s current position in the UK ice cream ingredients and accessories segment. It also strengthens our position in categories that are well known to Orkla Food Ingredients.

“This acquisition offers potential for increased exports and synergies with our present operations.”

Orchard Valley holds strong positions as a supplier of ingredients and accessories to the UK bakery, chocolate and ice cream market. Most of its turnover is generated in the UK, but the company also has increasing exports to Europe.

Orkla Food Ingredients lays claim to being the leading bakery ingredients player in the Nordic region and has sales and distribution companies in 22 countries.