News

Orkla ASA set to buy Kotipizza for $165.7M

December 6, 2018

The Finnish Financial Supervisory Authority has approved a deal for Nordic consumer goods supplier, Orkla ASA, to acquire European pizza powerhouse, Kotipizza Group during a tender offer period of Dec. 7-Jan. 15, a news release said. The pending offer is for 23 euros ($26.09 USD on Dec. 6, 2018) for each of more than 6.3 million issued and outstanding shares, or slightly over $165.7 million USD in cash. 

Kotipizza's board unanimously recommended that shareholders accept the offer. Shareholders representing approximately 32.6 percent of all the shares in the brand have —subject to certain conditions —  irrevocably undertaken to accept that offer. Completion of the Tender Offer is subject to certain conditions, but Kotipizza will announce results on or about the first Finnish banking day Jan. 15, which is the end of the offer period. 

Kotpizza CEO Tommi Tervanen said the pending sale would mean good things for the brand.

"Since the first restaurant opened in 1987, Kotipizza has grown into a leading restaurant business in Finland, and I am proud of what we have achieved so far," Tervanen said in an email to this site. "Orkla is the leading brand-building company in the Nordics which will offer great opportunities and support for Kotipizza's future growth. Together the two companies will be well positioned to meet changing consumer habits, and I look forward to being part of this journey."

Since the first restaurant opened in 1987, Kotipizza has grown into a leading restaurant business in Finland, and I am proud of what we have achieved so far," Tervanen said Orkla is the leading brand-building
company in the Nordics which will offer great opportunities and support for Kotipizza’s future growth. Together the two companies will be well positioned to meet changing consumer habits, and I look forward to being part of this journey.”

Carnegie Investment Bank AB, Finland Branch acts as the financial adviser and arranger and Roschier, Attorneys Ltd. as the legal advisor to Orkla in the deal, while OP Corporate Bank plc is the arranger and Advium Corporate Finance Ltd. is Kotipizza's financial adviser, with Avance Attorneys Ltd serving as the company's legal adviser in the deal.