Orkla ASA — M&A Activity 2016

Sep 1, 2016

Orkla ASA: Orkla's acquisition of Harris completed

Orkla ASA: Orkla's acquisition of Harris completed

Orkla's purchase of L.G. Harris & Co. Limited ("Harris") has now been completed.

Harris is a leading supplier of Do-It-Yourself painting tools in the UK, and

with this acquisition Orkla House Care has doubled the size of its operations.

The agreement to purchase Harris was announced in May this year. The assessment

of the agreement under competition law was concluded at the end of July, and the

transaction was completed on 31 August 2016.

"We are very pleased that our acquisition of Harris has now been completed.

Orkla House Care is significantly strengthening its presence in the UK and

expanding its portfolio in the Do-It-Yourself (DIY) market," says Johs Høeg, CEO

of Orkla House Care.

Harris is a market leader for painting tools in the DIY market in the UK, with

well-known brands such as Harris, Lynwood, Harris Victory and T-Class. The bulk

of the company's sales are made in the UK market, but it also has some export

business.

Orkla House Care owns the Jordan, Anza, Spekter and Hamilton brands. Orkla House

Care is a leading supplier of painting tools in the Nordic region and in the UK

professional market, and is one of Europe's largest painting tool manufacturers.

"Orkla House Care and Harris are a good fit. With well-established brands and

solid customer relations, Harris holds a leading position in the DIY market,

while Orkla House Care is strong in the professional market in the UK. With a

stronger foothold in the UK, the companies are well positioned for further

growth," says Johs Høeg.

Harris owns two factories, one of which is located in Stoke Prior, Bromsgrove,

outside Birmingham (UK), and the other in Zhaoqing City in Guangdong Province

(China). In total, Harris has almost 1,000 employees. The company's head office

is in Bromsgrove.

Harris also owns 50% of a joint venture with a local partner in India, serving

the Indian market. Furthermore, the company has a minority shareholding in a

painting tool manufacturer in Sri Lanka.

Harris uses split financial year running from July to June for their accounts.

For the latest 12 months per June 2016, Harris achieved total sales revenues of

GBP 63.5 million (approx. NOK 694 million) and EBITDA of GBP 5.9 million

(approx. NOK 64 million) (unaudited figures). The company will be consolidated

into Orkla's statement of financial position as from 31 August, and into Orkla's

income statement as from 1 September 2016.

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

the consumer, out-of-home and bakery markets in the Nordic and Baltic regions

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

Stock Exchange and its head office is in Oslo, Norway. In 2015, the Group had a

total turnover of approximately NOK 33 billion, and 14,670 employees at year

end.

Orkla ASA

Oslo, 1 September 2016

Ref.:

Group Director Corporate Communications and Corporate Affairs

Håkon Mageli

Mob.: +47 928 45 828

E-mail: hakon.mageli@orkla.no

SVP Investor Relations

Mattias Orrenius

Mob.: +47 983 66 334

E-mail: mattias.orrenius@orkla.no

This information is subject of the disclosure requirements acc. to §5-12 vphl

(Norwegian Securities Trading Act)