Orkla’s acquisition of NutraQ completed
Orkla Health has completed its purchase of 100 per cent of the shares in NutraQ 2 AS (NutraQ), a leading supplier of subscription-based health and wellness products in the Nordic region. The acquisition has now been approved by all relevant competition authorities.
With its subscription-based business model, NutraQ represents a new business approach for Orkla.
“This acquisition will offer Orkla exciting growth opportunities. Both the health category and direct-to consumer sales are growing areas. I am impressed by the way NutraQ has used subscription solutions to reach consumers directly in their own homes. We will continue to develop NutraQ’s strong concepts, while also exploring new possibilities for direct-to-consumer sales,” says Orkla President and CEO Jaan Ivar Semlitsch.
NutraQ was established in Norway in 2002 and has since also established operations in Denmark, Finland and Sweden, as well as in the Czech Republic, Slovakia, the Netherlands and Poland in the past few years. The four Nordic countries account for around 90% of turnover. The company has around 170 employees and is headquartered in Oslo, Norway. The company currently has approximately 410 000 active subscriptions and has experienced good growth in the past few years. The number of active subscriptions has grown organically by an average of 13 per cent per year in the period 2018-2020. The company had a turnover of NOK 862 million in 2020 and EBITDA of NOK 188 million. The positive development has continued in 2021.
“NutraQ has built up several attractive health and wellness concepts, a business model based on direct-to-consumer (D2C) sales and an organisation and platform that are well designed for further growth and expansion. We believe that as part of Orkla, NutraQ will be able to continue the positive development of its current activities, launch more exciting concepts and help to generate profitable growth in the years ahead,” says Hege Holter Brekke, Orkla EVP and CEO of the Orkla Care business area.
To maintain NutraQ’s individuality and unique D2C sales competency, the company will remain a stand-alone entity. The company’s CEO Gustaf Solerød Christensen will remain in his position together with the rest of the executive management.
“NutraQ has evolved from an entrepreneurial business, via continued development and professionalisation under active private equity ownership, to now gain a new industrial home in Orkla. This is an appropriate move for NutraQ, and we are confident that Orkla will contribute to the company’s further growth and development,” Christensen says.
Orkla Health is purchasing NutraQ from the investment company Impilo and Sana Pharma Holding. The parties have agreed on a price that values NutraQ at NOK 3.1 billion on an enterprise basis. The company will be consolidated into Orkla’s financial statements as of 1 July 2021.
Orkla Health is one of Scandinavia’s leading branded goods suppliers in categories such as cod liver oil, vitamins and other dietary supplements. The best-known brands in its portfolio are Möller’s, Nutrilett, Maxim, Livol, Collett and Sana-sol.