Orkla ASA — M&A Activity 2022

Feb 23, 2022

Orkla Health acquires Healthspan

Orkla Health acquires Healthspan

Orkla Health has acquired 100 per cent of the shares in Healthspan Group

Limited, a leading supplier of dietary supplements in the British market.

Healthspan was established in 1996 and has since built up a strong brand and a

broad range of dietary supplements and skin care products. A total of 92 per

cent of the company's sales are made directly to consumers and the company has

around half a million active customers.

"This acquisition is a strategically important purchase for us along several

dimensions. It supports our ambitions of establishing a stronger position in

consumer health and it strengthens our position online. Healthspan has a broad

portfolio of dietary supplements and has established a strong business model

with direct sales to consumers in the British market. Both the health category

and direct-to-consumer sales channel are growing," says Orkla President and CEO

Jaan Ivar Semlitsch.

Healthspan has a strong portfolio of over 400 different products, most of which

are sold under the Healthspan brand. The company has a network of specialists

and experts with whom it collaborates, allowing market trends to be identified

quickly, and an efficient organisational structure to rapidly bring new products

to the market.

"Healthspan will be operated as a stand-alone company under Orkla Health. At the

same time, the company will be able to tap into Orkla's strength and expertise

to drive further growth. Through the acquisition of Healthspan, we are

reinforcing our position in consumer health and establishing a new home market

for Orkla Care," says Hege Holter Brekke, Orkla EVP and CEO of the Orkla Care

business area, of which Orkla Health is a part.

The current management team will continue to operate the business following the

acquisition.  Healthspan has 170 employees, the business is based in Guernsey

and has product distributed from centres in Great Britain, Ireland and New

Zealand.

Orkla Health is purchasing Healthspan from the estate of the founder Derek

Stephen Coates who passed away in 2020. The parties have agreed on a purchase

price of GBP 65 million on a cash and debt free basis. In addition, the

agreement includes the possibility of up to GBP 20 million of additional

purchase price depending on the company's results (EBITDA) in the next two

financial years.

In 2021, Healthspan had a turnover of GBP 50.0 million and normalised profit of

GBP 4.7 million (EBITDA). Most of the turnover comes from Great Britain.

The company will be consolidated into Orkla's financial statements as of 1 March

About Orkla Health

Orkla Health is one of the Nordic region's leading branded goods suppliers of

dietary supplements with products in segments such as cod liver oil, vitamins,

weight control and sport nutrition. The best known brands in its portfolio are

Möller's Tran, Nutrilett, Maxim, Livol, Collett, VitaePro and Sana-Sol. Orkla

Health is part of the Orkla Care business area. Consumer Health is one of

Orkla's three priority growth areas and the goal is 50 per cent growth in sales

in 2025.

About Orkla

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

the consumer, 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 headquarters in Oslo, Norway. In 2021, the group had a

turnover of NOK 50.4 billion, and it has around 21,500 employees.

Orkla ASA

23 February 2022

Ref.

SVP Communications

Dag Olav Stokken

Tlf.: +47 916 65 078

dag.olav.stokken@orkla.no

SVP Investor Relations

Kari Lindtvedt

Tlf.: +47 950 75 114

kari.lindtvedt@orkla.no

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation and is subject to the disclosure requirements pursuant

to Section 5-12 the Norwegian Securities Trading Act.

This stock exchange announcement was published by Kjetil Sørum, Investor

Relations Manager at Orkla ASA on 23 February 2022 at 23:57 CEST.