Orkla Confectionery & Snacks has entered into an agreement to purchase 100% of the shares in BUBS for an undisclosed amount.
Nordic company BUBS produces and markets mainly vegan sugar confectionery in bags and loose sweets for the Nordic market. Patrick Axzell, CEO of Orkla Confectionery & Snacks Sweden has said the acquisition is part of their ambition to become the country’s leading sustainable confectionery and snack company.
“BUBS is Sweden’s eighth largest confectionery company and shows very strong growth. This is an investment that is completely in line with strengthening Orkla Confectionery & Snacks Sweden’s strategic investment in confectionery and sustainable brands,” Patrick explained. “BUBS is a strong brand and company that gives us a good platform for continued growth in Sweden, but also in our other Nordic and Baltic countries.”
BUBS has demonstrated strong development, as the company has experienced, on average, annual sales growth of 10% since 2012/2013 with a turnover of SEK 211 million in 2021/2022. The sellers are members of the Lindström family, who founded the company in 1992.
As part of the acquisition, BUBS will be run as a subsidiary of Orkla and the current CEO, Niclas Arnelin, will remain in the company as Business Area Manager for BUBS. This means all employees in BUBS will continue to work and production will continue to be carried out in BUBS’ facility in Jönköping, Sweden.
The production facility is run with the aim of climate-neutral production, as heat is supplied using pellet burners with waste from the forest and parts of the electricity supply come from nearly 1000 solar panels located on the roof.
“We are happy to hand over the baton to Orkla and have confidence that they will develop the company further to the next level,” said Ulrik Lindström, on behalf of the owner family.
“Our ambition is to double our turnover by 2030, where BUBS forms an important part. In order to continue this growth journey, we will build on the company’s existing strategy and at the same time utilise the advantages that come with BUBS now becoming part of a larger company,” explained Patrick Axzell.
Formal change of ownership will take place in the first quarter of 2023.
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