Norwegian conglomerate Orkla has entered into an agreement to acquire 75% of the shares of the Netherlands-based pizza chain, New York Pizza.
The current shareholders will retain a 25% ownership of the company, Orkla added.
The enterprise value of the business on a 100% basis is €145 million, or the equivalent of NOK1.5 billion approximately.
Jaan Ivar Semlitsch, Orkla president and CEO, said, “New York Pizza is a well-run company with competent management and a well-functioning franchise model.
“The acquisition of New York Pizza is aligned with Orkla’s strategic ambition of growing in the out-of-home segment, which has higher growth than the traditional grocery channel.”
Recently, Orkla announced the takeover of Icelandic confectionery firm Nói-Siríus HF, as well as taking a minority investment in Because, Animals, a pet food firm. Its Orkla Health arm recently completed the acquisition of 100% of shares in NutraQ 2 AS, a supplier of subscription-based health and wellness products in the Nordic region.
New York Pizza Financial Performance
New York Pizza generated a normalised EBITDA of €12.7 million (approximately NOK135 million) and reported EBITDA amounted to €12.1 million (approx. NOK 128 million) over the last 12 months to 30 April.
Last year, the chain sold 11.5 million pizzas and generated a total turnover of €54.7 million (NOK555 million), including its dough manufacturing unit.
Since 2008, the chain has witnessed a sales growth of approximately 12% per annum, driven by like-for-like growth and roll-out of new sales outlets.
In 2019, Orkla made a formal bid to acquire Finland's Kotipizza business, following an earlier announcement that it was seeking to buy the chain.
'Important Step Forward'
Philippe Vorst, CEO of New York Pizza, described the acquisition by Orkla as an “important step forward” that will further help New York Pizza scale its business model.
“With Orkla, we have found a partner that shares New York Pizza’s values, strategy and culture. We are looking forward to working with them to realise the company’s international growth potential,” he explained.
The Amstelveen headquartered business runs 232 franchisee-operated outlets, 229 of which are in the Netherlands.
At the end of 2020, the pizza chain opened its first outlet in Belgium, in the town of Leuven, and it is planning to open five new sales outlets in Belgium this year. The chain also operates two outlets in Cologne, Germany.
Orkla reported a 13.5% increase in group operating profit in the first quarter of its financial year. [Photo credit: Trygve Indrelid, NTB]
