Norway's Orkla seeks to acquire Kotipizza

Norway's consumer goods group Orkla said Thursday it has signed a combination agreement worth 146.1 million euros to launch an offer to purchase all the shares in Kotipizza Group, the owner of Finland's largest chain for pizza restaurants.

Kotipizza Group is listed on Nasdaq Helsinki, and the offer concerns the purchase of all outstanding shares in the company, Orkla said in a statement.

The offer price is 23 euros per share, which values Kotipizza Group's equity at approximately 146.1 million euros, according to the statement.

The Board of Directors of Kotipizza Group has unanimously decided to recommend its shareholders to accept this offer, it said.

Orkla said Kotipizza Group is a leading player in the growing Finnish restaurant market and Finland is one of its home markets.

"Kotipizza Group is a well-run company with competent management and a well-functioning franchise model," Orkla President and CEO Peter A. Ruzicka was quoted as saying.

"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," he said.

Kotipizza Group is best known for the pizza restaurant chain Kotipizza, which was established in 1987. Since then, the chain has grown to 280 restaurants in Finland, of which all except one are franchise-operated.