Norwegian consumer goods and concept solutions company Orkla has entered a combination agreement to make an offer to purchase all the shares in Finland-based pizza restaurant chain Kotipizza Group.
The company will offer €23 per share, valuing the pizza chain at approximately €146.1m ($166.7m).
Established in 1987, Kotipizza Group currently owns Kotipizza, Chalupa and Social Burger Joint restaurant chains.
With 95 employees, the group has 280 restaurants in Finland, which are mainly operated by franchisees.
Orkla president and CEO Peter A. Ruzicka said: “Kotipizza Group is a well-run company with competent management and a well-functioning franchise model.
“The acquisition of Kotipizza Group is in line with our strategic ambition to increase our presence in channels with faster growth than traditional grocery, and we see a good match between the two companies.”
The group board of directors have also decided to recommend the company’s shareholders to accept this offer.
The completion of the tender offer is subject to certain conditions, including relevant regulatory approvals.
If materialised, the transaction will offer a stake exceeding 90% in Kotipizza Group to Orkla.
The group also owns Helsinki Foodstock, which supplies ingredients to the group’s restaurant brands.
Orkla currently operates in the Nordics and Baltics, as well as selected markets in Central Europe and India, with approximately 18,000 employees.