Orkla ASA — M&A Activity 2015

Jan 15, 2015

Orkla ASA: Orkla acquires Cederroth

Orkla ASA: Orkla acquires Cederroth

Orkla Home & Personal has entered into an agreement to acquire 100% of the

shares of the branded consumer goods company Cederroth. Through this

acquisition, Orkla Home & Personal will become one of the leading Nordic

suppliers of personal care, health, wound care and household cleaning products.

Cederroth has a product portfolio of well-established brands such as LdB, Asan,

Bliw, HTH, Salvequick, LongoVital, Multiplex, Samarin, Allévo and Grumme.

Cederroth operates in Sweden, Finland, Denmark, Norway, Poland and Spain. The

company has four factories located in Sweden, Denmark, Poland and Spain. In

2013, Cederroth achieved a turnover of SEK 1,984 million, and EBITDA of SEK 194

million. The company has a total of 850 employees.

"This acquisition is strategically attractive, and is especially important as it

strengthens Orkla Home & Personal's presence in Sweden. Cederroth is a robust

Nordic player and offers considerable potential for value creation. Significant

cost and top line synergies have been identified," says Orkla President and CEO

Peter A. Ruzicka.

The product categories offered by Orkla Home & Personal and Cederroth are

largely complementary. In addition, wound care will be an attractive new

category for Orkla. Cederroth also holds a well-established position in the

Nordic pharmacy market. Once the agreement has been completed, Cederroth's

operations will be incorporated into the Orkla Home & Personal business area.

"Together, Cederroth and Orkla Home & Personal will have even better insight

into local consumer preferences and customer needs. By merging their operations,

Cederroth and Orkla Home & Personal are augmenting their overall competitiveness

in local markets where there is significant international competition," says

Stig Ebert Nilssen, Orkla Executive Vice President and CEO of Orkla Home &

Personal.

The purchase price is SEK 502 million. This purchase price values the entire

company (on a debt-free basis) at SEK 2,015 million, based on Cederroth's

balance sheet as of 30 September 2014. The purchase price will be funded through

Orkla's existing credit facilities.

The sellers are funds managed by CapMan and Litorina. The company's senior

management and other minority shareholders will also sell their ownership

interests of approximately 10 per cent.

The agreement is subject to the approval of the relevant competition

authorities. The transaction is expected to be completed no later than within Q3

More detailed information about Cederroth, including facts about its governance

and management as well as key figures, is included in appendix.

About Orkla

Orkla is a leading supplier of branded consumer goods and concept solutions to

the grocery, out-of-home and bakery markets in the Nordics, the Baltics and

selected markets in Central Europe and India. Orkla is listed on the Oslo Stock

Exchange and has its head office in Oslo. In 2013, the Group had a turnover of

NOK 33 billion and approximately 17,000 employees at year-end.

Orkla Home & Personal today comprises five branded consumer goods businesses

which primarily serve the Nordic region:

Lilleborg (personal care and home care products), Lilleborg Profesjonell (full-

range supplier of hygiene and cleaning solutions for the professional market),

Orkla Health (dietary supplements and health products), Pierre Robert Group

(textiles sold through the grocery channel) and Orkla House Care (painting tools

and cleaning products).

Orkla ASA

Oslo, 15 January 2015

Ref.:

Group Director Corporate Communications and Corporate Affairs

Håkon Mageli

Tel.: +47 928 45 828

SVP Investor Relations

Rune Helland

Tel.: +47 977 13 250

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1887139]