Dietary supplements and health foods company Midsona AB of Malmo, Sweden has agreed to acquire Danish organic food company Urtekram International A/S (Urtekram), Scandinavia’s largest organic wholesaler.
The move in early June came six months after Midsona bought Norwegian health food and supplements supplier Soma Nordic AS for NOK40 million (US$5.4m/EUR 4.4m).
The Swedish company’s purchase price for Urtekram was about 270 million Swedish crowns (US$33 million) on a debt free basis. Urtekram International market’s organic foods in the categories processed food and frozen food, certified organic care products as well as products intended for people with allergies, including lactose and gluten-free products.
Products are sold under the company’s own two brands such as Urtekram and Nutana. In addition, Urtekram distributes products from a number of well-known brands, such as: Hari tea, Biotta, Bioforce, RiceDream, Dr. Schär, Rigoni di Asiago and Mádara.
Urtekram’s products are sold in more than 36 countries: in Scandinavia, all of EU and Russia, the Middle East, Asia and North America. The majority of its export of organic foods is to the Scandinavian countries.
Midsona had annual sales of about SEK 920 million (US$140 million) in 2014 and holds a strong position in the Nordic market with own brands within health foods, personal care and hygiene. Midsona also sells a number of licensed internationally established brands.
Its products are sold through grocery and convenience stores, pharmacies, health stores and internet. Midsona’s priority trademarks are: Dalblads, Friggs, Miwana, Mygga, Naturdiet, Supernature and Tri Tolonen.
Peter Åsberg, president and CEO of Midsona, said that the integration of Soma, acquired in Norway, commenced in the first quarter and the company will be gradually integrated into the Group over 2015.
Midsona recently announced first quarter January-March 2015 net sales of SEK 232 million Swedish crowns ($US26.96 million) vs 241 million crowns a year ago.
“The sales trend weakened despite several of our major brands having maintained or increased their market share in a market that is currently weak,” Mr Asberg said.
A new series of superfoods was launched in supermarkets under the Friggs brand. In addition, several other important launches were made under the Catzy, Dalblads, Friggs, Naturdiet, Soma and Supernature brands.