Denali Ingredients, a top supplier of ice cream ingredients in the USA, has a deal in place to sell 84% of its shares to Orkla Food Ingredients. The purchase price is USD200m, paid in whole in cash and with no debt.
Over the past 15 years, Denali Ingredients has had remarkable organic growth of more than 10% p.a. The business has 160 people overall and its headquarters are in Wisconsin, where it operates two production plants.
Along with OFI’s dominant position in the European market for ice cream and confectionery ingredients, Denali Ingredients develops and produces ingredient solutions for the US ice cream industry. The new company will operate under the Sweet Ingredients vertical of OFI.
“The acquisition of Denali Ingredients is a significant and natural step for Orkla Food Ingredients into the market for ingredient solutions for the US ice cream industry. The food ingredients sector is fragmented with significant potential for further consolidation and growth. Based on these opportunities we will now initiate a process to seek a long-term partner for OFI to accelerate growth and value creation.” says Nils K. Selte, president and CEO of Orkla Food Ingredients.