OFI invests in ice cream ingredients supplier

October 6, 2022

Orkla Food Ingredients (OFI) has entered into an agreement to purchase 84% of shares in Denali Ingredients, an ice cream ingredients business based in the US. Denali Ingredients has seen strong growth in the past 10 years. Headquartered in Winsconsin, it carries out manufacturing at two facilities with 160 employees in total.

“The acquisition of Denali Ingredients is a significant and natural step for OFI into the market for ingredient solutions for the US ice cream industry,” said Nils K. Selte, President and CEO of Orkla. “The food ingredients sector is fragmented with significant potential for further consolidation and growth. Based on these opportunities we will now initiate a process to seek a long-term partner for OFI to accelerate growth and value creation.”

Denali Ingredients develops and manufactures ingredient solutions for the US ice cream industry, complementary with OFI’s strong position in the European market for ice cream and confectionery ingredients. The new business will be part of OFI’s Sweet Ingredients vertical.

“With this acquisition, OFI is strengthening its position as a leading ingredients supplier to the bakery, ice-cream and confectionery industries. We have a stated strategy of increasing our exposure to markets and categories with higher growth and margins,” explained Johan Clarin, EVP of Orkla and CEO of OFI. “Denali Ingredients, with its leading position in the attractive US market, fits well in this picture. With the addition of Denali Ingredients to our group, OFI will increase the size of its Sweet Ingredients area by 45%.”

The seller is Denali Companies, which is owned and operated by the founding family of Wally and June Blume. Denali Ingredients encompasses Denali Ingredients, Denali Staffing, Denali Investment Properties and Denali Equipment.

“We are very pleased to become part of OFI, which is already a major player in Denali’s categories in Europe and with a deep understanding of our industry. I am convinced that together we will continue Denali’s journey of growth and value creation. As a team we look forward to a fruitful partnership and cooperation,” commented Neal Glaeser, CEO of Denali Ingredients.

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